Abstract
In traditional investment planning investment decisions are usually taken to be now − or − never, which the firm can either enter into right now or abandon forever. The decision on to close/not close a production plant has been understood to be a similar now-or-never decision for two reasons: (i) to close a plant is a hard decision and senior management can make it only when the facts are irrefutable; (ii) there is no future evaluation of what-if scenarios after the plant is closed. Nevertheless, as we will show, it could make sense to work a bit with what-if scenarios as closing the plant will cut off all future options for the plant.
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© 2011 Springer-Verlag Berlin Heidelberg
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Carlsson, C., Fullér, R. (2011). Fuzzy Real Options for Strategic Decisions. In: Possibility for Decision. Studies in Fuzziness and Soft Computing, vol 270. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-22642-7_5
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DOI: https://doi.org/10.1007/978-3-642-22642-7_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-22641-0
Online ISBN: 978-3-642-22642-7
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