Tony W Tong and Jeffrey J Reuer, Real options in multinational corporations: organizational challenges and risk implications,

Tony W Tong: School of Management, State University of New York at Buffalo, Buffalo, NY, USA

Jeffrey J Reuer: Kenan-Flagler Business School, University of North Carolina, Chapel Hill, NC, USA Journal of International Business Studies, 2007, vol. 38, issue 2, pages 215-230

You will need to perform to following steps in your memo:

Describe the venture.

Describe the pros and cons of undertaking the venture using techniques from the above paper.

Describe using Real Option Analysis how the company may undertake a course of action that alters the present value of the cash-flows from a real physical asset (creativity is encouraged).