Case | HBS Case Collection | 2001 (Revised from original 1999 version)

Penelope's Personal Pocket Phones

by Paul A. Gompers

Abstract

Provides students with an opportunity to use simple real options analysis to value a startup. Penelope Phillips is deciding whether to start a company to make wireless phones. Students get experience using traditional discounted cash flow valuation and a real options approach.

Keywords: Valuation; Entrepreneurship; Business Startups; Wireless Technology; Capital Budgeting; Corporate Finance; Manufacturing Industry; Electronics Industry;

Citation:

Gompers, Paul A. "Penelope's Personal Pocket Phones." Harvard Business School Case 299-004, September 2001. (Revised from original April 1999 version.)