Choosing Innovation Projects
8 important questions on Choosing Innovation Projects
What is meant with capital rationing?
How is the rank ordering established for capital rationing?
What are 2 quantitative discounted cash flow methods?
- Internal rate of Return (IRR), the rate of return yielded by a project, normally calculated as the discount rate that makes the net present value of an investment equal zero.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
When do you make use of a real option?
How does the real options looks like, in terms of costs, future investment and returns?
- The cost of future investment required to capitalize on the R&D program (such as the cost of commercializing a new technology that is developed) can be considered the exercise price.
- The returns to the R&D investment are analogous to the value of a stock purchased with a call option.
What is the most common method for choosing a project?
An method for using both methods is Data Envelopment analysis, what is it?
What is the biggest advantage of using DEA (Data Envelopment Analysis)?
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding