Usually, traditional methods for investment project appraisal such as the net present value (hereinafter NPV) do not incorporate in their values the operational flexibility offered by including a real option included in the project. In this paper, real options, and more specifically the option to abandon, are analysed as a complement to cash flow sequence which quantifies the project. In this way, by considering the existing analogy with financial options, a mathematical expression is derived by using the binomial options pricing model. This methodology provides the value of the option to abandon the project within one, two, and in general n periods. Therefore, this paper aims to be a useful tool in determining the value of the option to abandon according to its residual value, thus making easier the control of the uncertainty element within the project.
The COVID-19 pandemic has affected all walks of life, including education. Universities have been forced to teach in a blended or online environment, which has led professors to adapt their traditional teaching–learning methodologies. The professors of Mathematics of Financial Operations at the University of Almeria (Spain) have created video tutorials so that students can autonomously prepare the theoretical part of the subject, leaving the face-to-face classes for practical exercises. This article aims to analyze the effectiveness of video tutorials and the autonomy finally achieved by students in their learning. For this purpose, a questionnaire was carried out in which, through 21 questions, the constructs Autonomy, Effectiveness, Depth, Format, Challenge, and Use were assessed. Based on these six latent variables, the proposed model using the Partial Least Squares Structural Equation Modeling (PLS-SEM) methodology revealed that students considered the Format and Depth of the video tutorials crucial for genuinely effective performance learning and promoting their autonomy. On the other hand, the variables Challenge and Use were poorly rated. This article presents an original valuation model, which has the virtue of achieving a prediction of 78.6% and, in addition, has high predictive power.
The framework of this paper is the field of decision-making processes in which people face the choice between probabilistic and dated rewards. Traditionally, the preferences for probabilistic outcomes have been analyzed by the Expected Utility (EU) model whilst the preferences for dated rewards have been studied by the Discounted Utility (DU) model. Nevertheless, recent empirical findings have revealed the existence of several anomalies or paradoxes in both contexts. Specifically, EU and DU models exhibit an anomaly affecting the amount of the reward, viz the "peanuts" and the magnitude effects, respectively, which seem to go in opposite directions. The aim of this paper is to analyze both effects jointly in a wide setting involving choices subject to risk and over a period of time, and thereby identify and consider the implications of one anomaly on the other.
Internet of things is developing at a dizzying rate, and companies are forced to implement it in order to maintain their operational efficiency. The high flexibility inherent to these technologies makes it necessary to apply an appropriate measure, which properly assesses risks and rewards. Real options methodology is available as a tool which fits the conditions, both economic and strategic, under which investment in internet of things technologies is developed. The contribution of this paper is twofold. On the one hand, it offers an adequate tool to assess the strategic value of investment in internet of things technologies. On the other hand, it tries to raise awareness among managers of internet of things technologies because of their potential to contribute to economic and social progress. The results of the research described in this paper highlight the importance of taking action as quickly as possible if companies want to obtain the best possible performance. In order to enhance the understanding of internet of things technologies investment, this paper provides a methodology to assess the implementation of internet of things technologies by using the real options approach; in particular, the option to expand has been proposed for use in the decision-making process.
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