2026-09-24T10:01:26Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/91542022-01-13T07:54:52Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Jiang Wang.
Tan, Enk Ee, 1968-
Sloan School of Management.
Sloan School of Management
2005-08-22T23:08:36Z
2005-08-22T23:08:36Z
2000
2000
http://hdl.handle.net/1721.1/9154
45259592
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2000.
Includes bibliographical references.
Traditional funding criteria like return on investment (ROI) and net present value (NPV) do not work well with most eBusiness. These corporate budgeting techniques were designed for relatively slow progressing or well-established business models. The Internet marketplace is constantly being redefined and most of these projects have a high velocity of evolution and uncertainty. Firms and investors have yet to possess systematic and quantitative financial evaluation tools. After studying the behavior of Internet firm valuations and exhaustively investigating the conventional ways of valuing an eBusiness, this paper finds that real options valuation is an extremely useful analytical tool for valuing eBusiness projects from the management's perspective. It provides management a powerful extension of the traditional cash flow budgeting models, and a structure to attach and quantify strategies. Real options valuation in its current form, however, is not entirely suitable for the use as a valuation tool for traded stocks.
by Enk Ee Tan.
M.B.A.
71 leaves
4089507 bytes
4089264 bytes
application/pdf
application/pdf
eng
Massachusetts Institute of Technology
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http://dspace.mit.edu/handle/1721.1/7582
Sloan School of Management.
Real options valuation of eBusiness
Thesis
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Publication
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