This paper addresses the problem of irreversibility of investments, a topic related to the recently evolving "real options" literature. In the presence of alternatives, the opportunity to invest in a large "irreversible" project with uncertain benefits and costs is similar to a financial "call" option. In exercising this option one forgoes the potential gains from postponing the investment decision. Conventional economic appraisal techniques ignore...
انظر المزيد
تفاصيل
-
1991/8/31
-
ورقة عمل إدارية
-
11330
-
1
-
1
-
2010/7/01
-
Decision making under uncertainty - an option valuation approach to power planning
-
discount rate