Notice of RetractionResearch on investment decision of highway project with real option approach

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Because of highway´s huge investment, long life cycle and great uncertainties, the investor should be more cautious than ever. Traditional evaluation methods do not consider the uncertainty of the future cash flow of the project and the flexibility during the construction; on the contrary, the method of real option can evaluate the uncertainty correctly, cope with the irreversibility of the investment efficiently and have the advantage in reflecting the market value. This paper applies the real options theory to evaluate highway investment projects. It uses the binary tree models to determine the value of the project´s expansion options for the highway project investment and try to make contribution to project investment decision.