The Method of Real Options as an Instrument to Evaluate Projects with High Uncertainty
Анотація
The article analyzes the method of real options in terms of its ability to evaluate an investment project with a high level of uncertainty. The method of real options is compared with the classical approaches of project evaluation. The reasons for development of methods of evaluation of start-ups and innovative projects are described and substantiated. The advantages of the method of real options are highlighted by including in the evaluation of investor’s possibilities the implementation of managerial decisions in the process of creation of innovative products (project). The necessity of development of scientific and practical literature on evaluation of projects by means of complex options is substantiated. A three-year simple deferral option is described and evaluated for practical understanding of the financial advantages of the method of real options in making an investment decision, which results in the critical importance of correct investment solution at each stage of uncertainty scattering.
Класифікація
Ідентифікатори
Рецензії (0)
Написати рецензіюРецензій ще немає. Будьте першим!
Схожі роботи
Strategies on Initial Public Offering of Company Equity at Stock Exchanges in Imperfect Highly Volatile Global Capital Markets with Induced Nonlinearities
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis
Transaction Costs, Liquidity Risk, and the CCAPM
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis
Should You Carry the Load? A Comprehensive Analysis of Load and No-Load Mutual Fund Out-of-Sample Performance
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis
ASSESSMENT OF THE EFFECTIVENESS OF THE INTEGRATED FINANCIAL PLANNING SYSTEM
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis
REAL ESTATE VALUATION: FORMATION AND DIRECTIONS OF IMPLEMENTATION
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis
Modelling financial results based on “green” budgeting principles
Схоже за: Financial Reporting and Valuation Research · Capital Investment and Risk Analysis