Using Real Options Analysis for Evaluating Uncertain Investments in Information Technology: Insights from the ICIS 2001 Debate

• Main Authors: Tallon, Paul P., Kauffman, Robert J., Lucas, Henry C., Whinston, Andrew B., Zhu, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2002
• Subjects: Real options analysis; IT evaluation; investment risk; net present value; capital budgeting; Computer Sciences; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/2144; https://ink.library.smu.edu.sg/context/sis_research/article/3144/viewcontent/Using_Real_Options_Analysis_for_Evaluating_Uncertain_Investments.pdf
• Institution: Singapore Management University

Business and information systems (IS) executives continue to grapple with issues of risk and uncertainty in evaluating investments in information technology (IT). Despite the use of net present value (NPV) and other investment appraisal techniques, executives are often forced to rely on instinct whe...