Table of Contents

1. Getting started 2. The change process 3. Net present value 4. Comparing net present value, decision trees, and real options 5. Numerical methods for simple options 6. Compound and switching options 7. Going from one step per time period to many 8. A four-step process for valuing real options 9. Estimating volatility: consolidated approach 10. Keeping uncertainties separate 11. Case examples 12. Final thoughts and unfinished business Appendix A Appendix B Notes About the authors Index