Inancial Management Individual Work Week 5

Instructional Objectives for this activity:
Perform decision-tree analysis
In this section, you learned about real options. Real implies that these potential actions and assets are active, and therefore subject to greater volatility and influence on a firm than passive securities. It is important for financial analysts to employ solid decision-making skills in the evaluation of real options. In this Mini Case activity, you will assume the role of a financial analyst. Your task will be to prepare a report on real options, including running a decision-tree analysis to calculate NPV.

Complete the Chapter 14 Mini Case by downloading the following handout and referring to the steps in your textbook: