Publication Date
1-1-1980
Abstract
The possibility of liquidating assets used in a capital project are modeled as a "put" option in order to properly incorporate the qualities of the assets in the total valuation and assessment of risk in the project. Where assets can be diverted to other uses, abandonment of the project carries less risk than if the assets expired.
Document Type
Article
Keywords
investment, asset flexibility, durability
Disciplines
Business
Extent
22 pages
Format
Rights
The files in this collection are protected by copyright law. No commercial reproduction or distribution of these files is permitted without the written permission of Southern Methodist University, Cox Business School. These files may be freely used for educational purposes, provided they are not altered in any way, and Southern Methodist University is cited. For more information, contact ncds@smu.edu.
Language
English
