Sergio, Mendoza Sandoval; Salvador, Cruz Ake; … - In: Contaduría y Administración 59 (2014) 1, pp. 63-93
This paper extends the method of discounted cash flows to value investment projects through incorporating real options. It is assumed the cash flows generated by the firm are correlated with macroeconomic fundamentals, particularly with the interest rate. It is also assumed that the cash flows...