Dissertation
Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

Study on Analysis Method of Project Investment Value Based on Real Option

Author JiangJunFeng
Tutor ChenTong
School Xinjiang Agricultural University
Course Agricultural Economics and Management
Keywords Project investment value Real Options Operating flexibility Discounted cash flow method Net Present Value
CLC F224
Type Master's thesis
Year 2004
Downloads 254
Quotes 2
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The investment value of the project analysis plays an important role in the investment decision-making and research value analysis method can help enterprises to improve science and correctness of its decision . This paper first analyzes the causes and the history of the project investment value analysis method innovative research , review the impact of the the increasing uncertainties environment the traditional methods of project investment decisions - discounted cash flow (DCF) method , analyzes the advantages and disadvantages of the DCF method and its limitations , pointed out that in the uncertain environment , the project investment there in addition to net cash flow can bring additional value , ie operating flexibility and strategic value of the formation of value . Then this paper analyzes the distribution of the value of the project has the asymmetry of its rights and obligations not clear the nature of the project embedded options , and a comparative analysis of financial options . Argument from a different angle , the composition of the value of the project , and on this basis , the proposed project is the view of the combination of cash flow and option , and the establishment of real options analysis decision-making strategy . Then , in commenting on the existing three real options analysis framework based on a completely analytical framework . Finally, an example illustrates the application of the above analysis .

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