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The Application of Real Option Method in Multi-stage R & D Project Investment Decision
Author: ChenLiPing
Tutor: LuHongDing
School: Xi'an University of Petroleum
Course: Technology Economics and Management
Keywords: Real Options Multi stage R D projects Investment decisions
CLC: F272
Type: Master's thesis
Year: 2010
Downloads: 143
Quote: 0
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Abstract
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Research and development (RD) has a pivotal role in the development of enterprises , many enterprises have RD work up to the height of the corporate strategy . How to evaluate the RD investment has become an important issue of concern . The real options theory is the theory of financial option extension and development in the field of in-kind project investment decisions for businesses and individuals , it provides a new analysis of ideas and analysis methods . In this paper, the application of multi- stage real options and exchange complex options ideological analysis RD project investment decisions . Study concluded First, the traditional method of project investment decisions , to draw traditional investment decision-making method does not apply to the conclusion of RD investment decisions , real options theory in the RD project decision-making in the application and rationality . The combination of real options related theory , this paper presents the option to identify and value of the options included RD Real option evaluation framework and evaluation model . The enterprise A hybrid electric vehicle research and development projects , for example , the use of a binary tree and after adjusted Margrabe exchange option pricing model to calculate the value of the options and were analyzed separately , for the inadequacies of the exchange options for the project itself , and Carr exchange compound option to re - assess the project value , come to the true value of R \u0026 D projects under the real Options Approach . A corporate R \u0026 D projects in the investment decision-making through real options theory to solve the problem of decision-making using traditional NPV method can not corrected the deficiencies of the traditional net present value method , for the improvement and breakthrough of the lack of appropriate quantitative investment evaluation method has a great theoretical and practical significance inhibit status quo of RD invest further growth .
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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making
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