Evaluation of Software Development Investments : A Real Options Approach
Software development projects are exposed to multiple sources of uncertainty. This uncertainty has an enormous impact in the investment economic value. The variability of a software development project payoff can be represented by the volatility of the project value over the analyzed period. The aim...
Guardado en:
| Autores principales: | , |
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| Formato: | Objeto de conferencia |
| Lenguaje: | Inglés |
| Publicado: |
2011
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| Acceso en línea: | http://sedici.unlp.edu.ar/handle/10915/125474 https://40jaiio.sadio.org.ar/sites/default/files/T2011/ASSE/654.pdf |
| Aporte de: |
| Sumario: | Software development projects are exposed to multiple sources of uncertainty. This uncertainty has an enormous impact in the investment economic value. The variability of a software development project payoff can be represented by the volatility of the project value over the analyzed period. The aim of this work is to define a framework to estimate the volatility of IT investments that takes into account all relevant information that has impact on project value, and show how to use this volatility estimation in a real options analysis. The suggested method could help IT managers produce a well-structured valuation process in software development investment decision-making, and understand the interactions between software process, market environment, financial issues and options value in a clear way. |
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