Overview
What this challenge is about.
Value a solar farm under policy risk using DCF and real options with Monte Carlo simulation. Get a verifiable certificate.
The scenario
SunVest is a mid-sized renewable energy firm with 200 employees, operating in Southern Europe. They have a pipeline of projects but face regulatory uncertainty.
The Brief
What you'll do, and what you'll demonstrate.
Determine whether to invest in a solar farm now, delay, or abandon, given uncertainty in electricity prices and subsidy policies.
Earning criteria — what you'll demonstrate
- Apply real options theory to value managerial flexibility under uncertainty
- Model stochastic processes (e.g., geometric Brownian motion) for key variables
- Use Monte Carlo simulation to estimate probability distributions of project value
- Compare traditional DCF with real options valuation and interpret differences
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Real Options
Apply real options to solve real industry problems and demonstrate production-level capability.
- Monte Carlo Simulation
Apply monte carlo simulation to solve real industry problems and demonstrate production-level capability.
- Stochastic Modeling
Apply stochastic modeling to solve real industry problems and demonstrate production-level capability.
- Project Valuation
Apply project valuation to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles: