The application of fuzzy-real option theory in BOT project investment decision-making

2009 ◽  
Author(s):  
X. Bi ◽  
X. F. Wang
Keyword(s):  
Decision Making ◽  
Real Option ◽  
Investment Decision ◽  
Project Investment ◽  
Real Option Theory ◽  
Investment Decision Making ◽  
Option Theory ◽  
Bot Project

Economic Evaluation Model of Grid Construction Project Based on Real Option Theory

2014 ◽  
Vol 1008-1009 ◽  
pp. 800-803
Author(s):  
Liang` Chen ◽  
Zhi Yan Liu ◽  
Kang Ren Huang ◽  
Min Du
Keyword(s):  
Decision Making ◽  
Real Option ◽  
Evaluation Model ◽  
Investment Decision ◽  
Real Option Theory ◽  
Investment Decision Making ◽  
Economic Evaluation Model ◽  
Grid Construction ◽  
Option Theory ◽  
Real Option Method

This paper combined with the real conditions on investment and decision-making of grid construction. Considering the uncertainty of project, we applies real option theory into evaluation model of grid construction and establishes evaluation model of grid construction based on real option theory. The result indicates that proper application of real option method into the investment decision-making model of grid construction can better enable grid to obtain profit from investment uncertainty, which provides larger profit and opportunity for grid corporation.

scholarly journals European Option Based R&D Investment Decision Making under Uncertainties

2015 ◽  
Vol 2015 ◽  
pp. 1-6
Author(s):  
Qing Miao ◽  
Boyang Cao ◽  
Minghui Jiang
Keyword(s):  
Decision Making ◽  
Research And Development ◽  
Joint Venture ◽  
Investment Decision ◽  
Optimal Investment ◽  
European Option ◽  
Project Investment ◽  
Research Joint Venture ◽  
Investment Decision Making ◽  
D Investment

This paper establishes the payoff models of the European option for research and development (R&D) projects with two enterprises in a research joint venture (RJV). The models are used to assess the timing and payoffs of the R&D project investment under quantified uncertainties. After the option game, the two enterprises can make optimal investment decision for the R&D project investment in the RJV.

Real Option in Urban Rapid Rail Transit PPP Project

2014 ◽  
Vol 505-506 ◽  
pp. 437-442 ◽  
Author(s):  
Chao Wang ◽  
Wei Liang ◽  
Shou Qing Wang
Keyword(s):  
Decision Making ◽  
Real Option ◽  
Rail Transit ◽  
The Public ◽  
Real Option Theory ◽  
Real Issue ◽  
Urban Rail ◽  
Decision Making Problem ◽  
Car Park ◽  
Option Theory

To address a real issue in Beijing Urban Rail PPP project, an Excel model is built to solve the decision making problem of car park scale using real option theory. The model calculates the expected NPV of different options of building scale with real option embedded, avoiding the trouble of option pricing. The results show that real option can significantly optimize the decision making process of PPP projects. Especially when dealing with the problems raised by uncertainty in the process of negotiation, decision making and execution of a PPP project, real option can be more useful as it not only offers a way to improve the rationality of a decision, but also helps both of the private and the public sectors to reach an agreement.

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