TAILIEUCHUNG - Real option valuation in investment projects

In this study, real option method is used to value real investment project. Furthermore, AHP method is utilized to determine elements that are used in project valuation process. Whereas the investment decision implementation that is made in solar energy sector cannot be carried out with classical approximations, a project case that is valued with real option valuation method can be argued. | Journal of Applied Finance Banking 2012 177-188 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2012 Real option valuation in investment projects Oktay Ta 1 and Huseyin Yigit Ersen2 Abstract Several new models are used to eliminate lack of classic methods in valuation of investment decisions. Finding an answer for the question which method is used to value investment is important for investor to decide right investment. Choice of both methods and the components that are used in these methods are important in valuation of investments. Real options one of the current methods in project valuation provide several advantages for investors which apart from classic approximations Real options give options like postponement enlargement growth abandonment to the investor in decision process so it creates opportunity that provide more careful valuation. In this study real option method is used to value real investment project. Furthermore AHP method is utilized to determine elements that are used in project valuation process. Whereas the investment decision implementation that is made in solar energy sector cannot be carried out with classical approximations a project case that is valued with real option valuation method can be argued. JEL classification numbers G31 D81 E22 Keywords Valuation methods of investment decisions financial options real options option valuation methods and AHP 1 Istanbul Technical University Management Faculty Istanbul e-mail tasokta@ 2 Istanbul Technical University Management Faculty Istanbul e-mail ersenh@ Article Info Received June 13 2012. Revised August 27 2012 Published online October 15 2012 178 Real option valuation in investment projects 1 Introduction Hardening of the conditions of competition and globalized economy leads companies to make new investments. It is so important that firms can assess their investment alternatives accurately to maintain their life curve. The project is often to .

• Quỹ đầu tư
• Valuation methods of investment decisions
• Financial options
• Real options
• Option valuation methods and AHP
• Real option valuation
• Innovation and investment project
• Method of real options
• Black Scholes option valuation model
• The binomial model
• Prices of real option
• Corporate finance
• Capital structure
• Payout policy
• Option valuation
• Raising equity capital
• Debt financing
• Working capital management