Project valuation for the strategic management of research and development

Author

Neal Lewis

Abstract

"The most widely used technique for evaluating projects is discounted cash flow. However, discounted cash flow analysis fails to consider flexibility. Real options analysis offers an alternative technique that provides value for the inherent managerial flexibility that most R&D projects contain. The intent of this study is to investigate methods of valuating research and development projects. This consists of the comparison of alternative techniques including a detailed investigation of real options analysis. The investigation compares the relationships of future cash flow, investment costs, interest rates, time, and volatility with the estimated net present value of the project using computer simulations. Such valuation analysis can aid the firm in managing R&D projects for maximum strategic value."--Abstract, page iii.

Department(s)

Engineering Management and Systems Engineering

Degree Name

Ph. D. in Engineering Management

Publisher

University of Missouri--Rolla

Publication Date

Spring 2004

Pagination

xv, 199 pages

Note about bibliography

Includes bibliographical references (pages 192-198).

Rights

© 2004 Neal Arthur Lewis, All rights reserved.

Document Type

Dissertation - Citation

File Type

text

Language

English

Subject Headings

Real options (Finance)Project management -- EvaluationEvaluationResearch

Thesis Number

T 8536

Print OCLC #

56780950

Recommended Citation

Lewis, Neal, "Project valuation for the strategic management of research and development" (2004). Doctoral Dissertations. 1535.
https://scholarsmine.mst.edu/doctoral_dissertations/1535