DocumentCode :
2217155
Title :
Application of Real Options Theory Based on Binary Tree Model in Program Investment Decision-making
Author :
Xiuyan, Jia
Author_Institution :
Sch. of Manage., Changchun Inst. of Technol., Changchun, China
Volume :
1
fYear :
2010
fDate :
26-28 Nov. 2010
Firstpage :
201
Lastpage :
204
Abstract :
With the globalization of world economy, China\´s electronic industry market uncertainty also increases. Real option theory is of great help for electronics industry investment risks and uncertainties in question. Since the 1990s, the real option theory in the United States began to rise. This paper first introduces real option theory and its development are briefly reviewed, then using this theory to stray into XiangCheng electronic (Dongguan) Co., LTD. ("PCB division") investment made analysis, use binary tree model of real option theory solve value of XiangCheng "PCB division", compare its results with net present value, And real option in the evaluation of project of superiority, we can see the real option theory by analyzing more reasonable. Then the new options investment theory that is suitable under uncertainty is introduced into the domestic electronic industry.
Keywords :
decision making; electronics industry; investment; trees (mathematics); China electronic industry market; PCB division; United State; XiangCheng electronic Co. Ltd; binary tree model; options investment theory; program investment decision making; real option theory; world economy; Binary Tree Model; Net Present Value; Project Investment; Real Option;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Information Management, Innovation Management and Industrial Engineering (ICIII), 2010 International Conference on
Conference_Location :
Kunming
Print_ISBN :
978-1-4244-8829-2
Type :
conf
DOI :
10.1109/ICIII.2010.54
Filename :
5694383
Link To Document :
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