Finance:real options valuations. Please refer guidelines and instructions.

Finance: real options valuations.. NOTE: If writer is writing same case for other person last two weeks, please advise should not take this assignment as it will create conflict Guidelines If you are writing the same case for different person last two weeks, then please do not take up this assignment as it will create conflict. Please take this assignment ONLY if you are an EXPERT in advance finance real options valuation topics. While answering the questions in the case material, please, make sure Quality is very important rather than quantity. Answers must be discussed within the provided frameworks and concepts those in the capital projects as valuation article and general finance concepts/frameworks in real options valuations perspective. Please use the attached excel template –Black Scholes and Merton model based (BSM) (data is more accurate) for your calculations. Please provide me worked out excel file. Please do not extract/copy (sorry to say this) anything from outside sources as it will create conflict. Arundel case is also available at below link as well: http://xxpt.ynjgy.com/resource/data/20070809/U/138/data/jiaoan/19.pdf Instructions Case: Arundel case analysis. Subject: Advance Finance and Accounting; Subtopic: Real Options Valuations. Analysis and writing instructions: Note: Discounted Cash Flow Analysis and Real Options Valuations are REQUIRED to be calculated for analysis, pls see below. In addressing the Arundel case, please analyze below. Make sure that you have read: Capital Projects as Real Options: An Introduction (attached) and please DO NOT use the NPVq method as suggested in that article! The attached BSM excel template provides much more accurate results. To further help the analysis for the case, consider the following comments/questions in addressing the issues. Please note that these questions define the scope of the work: they are mere guidelines, helping to focus you on issues that matter. Please note further that addressing them is not considered as sufficient analysis. Do not limit your thinking, analysis, or findings by these questions. (1) a) Why do the principals of AP think they can make money buying movie sequel rights? b) Why do they want to buy a portfolio of rights in advance rather than negotiating film-by-film to buy them? (2) Estimate the per-film value of a portfolio of sequel rights such as AP proposes to buy. Several approaches may be available. You must use some portion of the data set in EXH-6-9. You may find it helpful to consult the APPDX. This explains how these figures were obtained. (3) a) What are the primary advantages or disadvantages of the approach you took to value the rights? b) What additional assistance, data, or assumptions would you require to refine your estimate of the rights’ value? (4) a) What problems or disagreements would you expect AP and a major studio to encounter in the course of a relationship like that described in the case? b) What contractual terms and provisions should AP insist on? (5) The focus is detailed analysis. You are required to provide two methods/approaches as below to the financial analysis of the problem: Discounted Cash Flow Analysis. REQUIRED Real Options Valuations. REQUIRED method, their advantages and disadvantages and whether the technique employed provides a reasonable approach. and preferably in bullet format.