Mikael Collan D.sc.

The Pay-off Method: Re-inventing Investment Analysis: with Numerical Application Examples from Different Industries Mikael Collan D.sc.

Businesses and managers everywhere are finding out that using the classical investment analysis methods is not enough to cover their need for smart decision-support for high risk, hard to estimate investments under vague information, such as investments into R&D, IPR, and any other strategic projects and assets. This book introduces the pay-off method and shows how the method can enhance investment analysis and decision-support in a profound way. The pay-off method and a selection of tools within the pay-off method arsenal, including real option valuation, are simple to use, transparent, no-nonsense, and intuitive to understand. This book explains the pay-off method in detail and shows with many numerical easy-to-follow examples how the method can be applied in real-world decision-making in different industries. This book shows also how decision-making can be enhanced by visualizing imprecision and how real option valuation can be performed simply. All method presented are easily implementable with the most commonly used spread-sheet software. The pay-off method is a clear continuation to where the "old" investment analysis methods usually leave uss off and gives you a chance to better plan and to understand your investments. After having read this book you will never be the same decision-maker again, but you will know what information to require for better investment decision-making.