A Real-World Way to

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Issue:

Business

 

Written by:

Marlene G

 

Date added:

April 10, 2011

 

Level:

 

Grade:

B

 

No of pages / words:

27 / 7528

 

Was viewed:

614 times

 

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Essay content:

These projects are thus options-" rear' options, as opposed to financial options-in which managers have the right but not the obligation to invest. It's therefore appropriate that managers have begun to apply option theory to help them make decisions about these projects. Indeed, a survey of 4,000 CFOs published in 2001 by John Graham and Campbell Harvey found that 27% of the respondents claimed they "always or almost always" used some sort of options approach to evaluating and deciding upon growth opportunities...
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Indeed, a survey of 4,000 CFOs published in 2001 by John Graham and Campbell Harvey found that 27% of the respondents claimed they "always or almost always" used some sort of options approach to evaluating and deciding upon growth opportunities. But there are, it seems, at least as many customers who are dissatisfied with this tool...
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