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Department of Economics, University of Copenhagen

July 18-August 05, 2011
Summer School Courses 2011 "Investment Theory" - Department of Economics, University of Copenhagen
Copenhagen, Denmark
Investment projects typically consist of an initial investment and some uncertain dividend. An example could be to build a factory and sell the produce at an uncertain market price. In the course investment projects are seen as flexible in the sense that investor is able to decide when to invest rather than facing the choice between investing now or not investing. Moreover there may be other flexibilities in investment projects such as the possibilities to stop the project and to expand the project. Due to the flexibility the usual NPV rule (if the net present value is positive, then invest) turns out to be wrong. Indeed it is necessary to take the flexibility into account. In the course a theory, where the options or flexibilities in investment projects are priced, is developed. [gem?_?? den Informationen des Anbieters - according to site editor's information]
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