The Study on Market Investment Decision-Making Using Real Options Theory
Abstract
The first phase of the project value 1.89 million yuan, consider choosing, can see the costs to choose the second stage of the project. The first stage of the project investment, make the company shall have the right to choose extension development phase ii project of 77.37 million yuan. So the second phase project investment is good. From the above analysis, we can see, at the same time there are two kind of real options in xiangcheng "PCB division", one kind is immediately investment projects of investment options, the other is additional investment choice. In considering this two kinds of real options pricing method, again in this project, we see "the people’s bank of China" division is practical and feasible.
Keywords
Real Option Theory Project Investment Binary Tree ModelPreview
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