PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS

PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS

PT Cita Mineral Investindo Tbk. is a company that mines and processes bauxite into aluminum. Companies make investments decisions after completing an evaluation process. Valuation is frequently performed using traditional evaluation methods such as Discounted Cash Flow (DCF), but this method does...

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Main Author: Carla Christabella, Donna
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/81772
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Institution: Institut Teknologi Bandung
Language: Indonesia
id id-itb.:81772
spelling id-itb.:817722024-07-03T14:34:22ZPROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS Carla Christabella, Donna Indonesia Final Project PT Cita Mineral Investindo Tbk., valuation, real options, learning options INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/81772 PT Cita Mineral Investindo Tbk. is a company that mines and processes bauxite into aluminum. Companies make investments decisions after completing an evaluation process. Valuation is frequently performed using traditional evaluation methods such as Discounted Cash Flow (DCF), but this method does not take account market uncertainties. Learning option allows manager to gather project-related information, causing volatility to decrease gradually. As a result, real options combined with learning options is a better approach than DCF method because it allows managerial flexibility in investment decision making. In this research, the exploration activity project of PT Cita Mineral Investindo Tbk. in the time period of five years will be evaluated using Guthrie’s binomial tree and Haahtela’s trinomial tree. The application of real options equipped with learning options can increase the value of project rights so that companies may identify optimal investment strategies. text
institution Institut Teknologi Bandung
building Institut Teknologi Bandung Library
continent Asia
country Indonesia
Indonesia
content_provider Institut Teknologi Bandung
collection Digital ITB
language Indonesia
description PT Cita Mineral Investindo Tbk. is a company that mines and processes bauxite into aluminum. Companies make investments decisions after completing an evaluation process. Valuation is frequently performed using traditional evaluation methods such as Discounted Cash Flow (DCF), but this method does not take account market uncertainties. Learning option allows manager to gather project-related information, causing volatility to decrease gradually. As a result, real options combined with learning options is a better approach than DCF method because it allows managerial flexibility in investment decision making. In this research, the exploration activity project of PT Cita Mineral Investindo Tbk. in the time period of five years will be evaluated using Guthrie’s binomial tree and Haahtela’s trinomial tree. The application of real options equipped with learning options can increase the value of project rights so that companies may identify optimal investment strategies.
format Final Project
author Carla Christabella, Donna
spellingShingle Carla Christabella, Donna
PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
author_facet Carla Christabella, Donna
author_sort Carla Christabella, Donna
title PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
title_short PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
title_full PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
title_fullStr PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
title_full_unstemmed PROJECT VALUATION OF PT CITA MINERAL INVESTINDO TBK. FOR FIVE YEARS PERIOD USING REAL OPTIONS WITH LEARNING PROCESS
title_sort project valuation of pt cita mineral investindo tbk. for five years period using real options with learning process
url https://digilib.itb.ac.id/gdl/view/81772
_version_ 1822997431862689792

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