Estimating the Value of Delaying an Investment Project
  • Estimating the Value of Delaying an Investment Project
  • Estimating the Value of Delaying an Investment Project
Originally published: 29/06/2016 09:52
Last version published: 05/07/2016 09:01
Publication number: ELQ-52078-4
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Estimating the Value of Delaying an Investment Project

Calculate the value of the option to delay

delayfinanceinvestmentinvestment managementproject managementvaluation

Description
This model calculates the value of the optino to delay an invesment project It is useful for investment and project management.

Users must define the following inputs:
1. Present cash flow from investing in the project
2. Annualizd standard deviation
3. Initial investment needed to take project
4.Number of years you have rights to project

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

This business tool includes
1 Excel Model

Prof. Aswath Damodaran offers you this business tool for free!

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Further information

Outputs:
- Stock price
- Strike price
- Expiration
- T. Bond rate
- Variance
- Annualized dividend yield
- Value of the option to delay

Useful for a range of investment projects where inputs are defined

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