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Scor-eStore.com

Bodily, Samuel E.

Case

Scor-eStore.com

Bodily, Samuel E.

QA-0581 | Published September 4, 2001 | 7 pages Case

Collection: Darden School of Business

Product Details

An angel/venture capitalist could invest in an Internet sheet-music publishing start-up. The chance of success multiplied by the value, if successful, suggests that this isn't a good investment. Nevertheless, several friends suggest the optionality present in the venture: abort an unsuccessful website and sell the technology; switch the technology if the website is good, expand, buyout. Decision trees and Monte Carlo simulations are used to value these options, which make the opportunity look very attractive.

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