he real option approach to investment decision making The real option approach to investment decision making does not provide a superior alternative to traditional methods Capital investment decisions are among the most important strategic decisions a company can make. Twenty years ago‚ managers began to realise that the traditional capital spending decision techniques such as discounting cash flow (DCF) were based on estimated revenues and costs and hence not appropriate in an uncertain arena
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BINOMIAL THEOREM OBJECTIVES Recognize patterns in binomial expansions. Evaluate a binomial coefficient. Expand a binomial raised to a power. Find a particular term in a binomial expansion Understand the principle of mathematical induction. Prove statements using mathematical induction. Definition: BINOMIAL THEOREM Patterns in Binomial Expansions A number of patterns‚ as follows‚ begin to appear when we write the binomial expansion of a b n‚ where n is a positive integer
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Lesson 1 Assignment Questions Describe the scientific system by which plants are classified‚ in a report of up to 500 words. In this report‚ Cover: *the significance of the binomial system *why common names of plants should not be used to correctly identify plants. The scientific system to classify and naming plants are controlled and coordinated by botanist throughout the world. The system of classification in plants is to classify them in groups with similar characteristics. Then
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2. How can the Capital Asset Pricing Model (CAPM) be used to estimate the cost of capital for real (not financial) investment decision? The CAPM is a sound mathematical model that emphasizes expected returns in the market. It offers a basis of assessment for financial decisions when compared to real investments. The expected return on any venture must be higher than what a firm can receive by investing an equal sum of money in financial investments. Some notable investors disagree with the use of
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mainly intrigued by the rare quality of objects. These objects possess a greater value because they are in limited supply‚ and are extremely exclusive. The Wilton House is one of the few institutions that possess some of the Arundel marbles‚ and numerous other sculptures. The Arundel marbles are from classical Rome. These possessions reinforce the idea that some objects are collected based on their rarity‚ rather than their intrinsic value. This provides the owner with a certain amount of social persuasion
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Binomial nomenclature (also called binominal nomenclature or binary nomenclature) is a formal system of naming species of living things by giving each a name composed of two parts‚ both of which use Latin grammatical forms‚ although they can be based on words from other languages. Such a name is called a binomial name (which may be shortened to just "binomial")‚ a binomen or a scientific name; more informally it is also called a Latin name. The first part of the name identifies the genus to which
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2.2.3 Purposes of Real Property Valuation There are five elements of property value: Production: productivity is the way of enhancing or hindering capacity for valuation Utility: Utility is the ability to arouse desire for its possession or use. Scarcity: The object must be relatively scarce to satisfy the demand. Demand: There must be a need and ability to purchase. Transferability: It must be possible to transfer good title with ease (Donald A. Corb‚ JD and Richard A. Giovangelo‚ 2013-14)
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BF322: Advanced Corporate Finance Case Study – Arundel Partners: The Sequel Project Group Members: Chen Yanheng Loon Shu Juan Melissa Ong Joseline Tan Hui Kiow Fundamental Analysis Arundel Partners is an investment group‚ set up to purchase sequel rights associated with films produced by one or more major U.S. major studios. By owning such rights‚ Arundel will be able to wait and see if the movie was successful‚ before deciding whether to exercise its right and produce a second
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Arundel Partners Edgefield Consulting 09/25/98 As a new business opportunity arises‚ so do some of the uncertainties that come along with it. Our company has been brought in to evaluate some of these uncertainties that come along when unchartered territory is explored. Arundel Partners has an idea that has great potential‚ but there are a few problems that must be addressed in order for the idea to become reality. First‚ we will look at potential limited partners. More than likely general
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It was three o’ clock on a hot afternoon in Hong Kong in mid-2000. Larry Yung‚ Chairman of Citic Pacific Limited (“CPL”)‚ was having a board meeting with his property development team. From his window on the 33rd floor of Citic Tower‚ he could see the impressive Victoria Harbour and an undeveloped prime waterfront site. This piece of reclaimed land had been purchased by a company six months earlier at a public auction. Now‚ the owner wanted to dispose of it‚ and hence it was made available to CPL
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