• DocumentCode
    2431405
  • Title

    Application of real option approach to investment decision-making of building projects

  • Author

    Baozhu, Sheng ; Shiliang, Xu

  • Author_Institution
    Anhui Univ. of Archit., Hefei, China
  • fYear
    2011
  • fDate
    8-11 Jan. 2011
  • Firstpage
    708
  • Lastpage
    711
  • Abstract
    The research is to help building enterprise make plan and manage their strategy investment. Real option, as a new theoretical approach, is broadly applied in investment decision, finance management etc. In this paper the application of real options in building projects investment is discussed based on binomial tree model and B-S model which can improve the defect of traditional methods and make building projects investment become more reasonable.
  • Keywords
    construction; decision making; investment; project management; strategic planning; trees (mathematics); B-S model; binomial tree model; building project investment; investment decision making; real option approach; strategy investment; Buildings; Companies; Decision making; Investments; Mathematical model; Pricing; Uncertainty; building projects investment; investment opportunities; real option; uncertainties; valuation;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    Management Science and Industrial Engineering (MSIE), 2011 International Conference on
  • Conference_Location
    Harbin
  • Print_ISBN
    978-1-4244-8383-9
  • Type

    conf

  • DOI
    10.1109/MSIE.2011.5707506
  • Filename
    5707506