Investment project evaluation is based on the discounted cash flow method, using
criteria such as Net Present Value (NPV) and Internal Rate of Return (IRR). To
manage the uncertainty inherent in investment project evaluation, techniques like
sensitivity analysis and probabilistic risk analysis are employed. In recent years,
however, new techniques have emerged. This course focuses on investment
evaluation using these specialized techniques, particularly Real Options, which are
especially applicable in the extractive sector due to the high levels of uncertainty that
characterize it.
- Teacher: Δημήτριος Δαμίγος
ECTS : 4
Language : el
Learning Outcomes : Upon completion of the course, students will be able to: • Describe the fundamental principles of real options valuation and their application to investment problems. • Formulate investment decisions as real options. • Examine investment decisions under uncertainty by applying advanced valuation techniques. • Value real options using spreadsheets.