A Fuzzy Pay-Off Method for Real Option Valuation
نویسندگان
چکیده
منابع مشابه
A fuzzy approach to real option valuation
To have a real option means to have the possibility for a certain period to either choose for or against making an invetsment decision, without binding oneself up front. The real option rule is that one should invest today only if the net present value is high enough to compensate for giving up the value of the option to wait. Because the option to invest loses its value when the investment is ...
متن کاملA fuzzy real option approach for investment project valuation
The main purpose of this paper is to propose a fuzzy approach for investment project valuation in uncertain environments from the aspect of real options. The traditional approaches to project valuation are based on discounted cash flows (DCF) analysis which provides measures like net present value (NPV) and internal rate of return (IRR). However, DCF-based approaches exhibit two major pitfalls....
متن کاملExtended Abstract Compound Real Options with the Fuzzy Pay-off Method
Compound real options are combinations of real options, where an exercise of a real option opens another real option. Compound real options are commonly found in a number of industrial projects, but are especially relevant in, e.g., research and development (R&D) where the R&D projects give the real option to research further, or to start the implementation of the results. Valuation of compound...
متن کاملCOG-FPOM: Adapted Fuzzy Pay- Off Method for Real Options Valuation – Application in the Abandonment Decision of Petroleum Producing Fields
This paper presents the COG-FPOM, a model based on the Fuzzy Pay-Off Method (FPOM). The FPOM is a scenario-based real option valuation method that uses fuzzy numbers as possibility distributions. The paper shows an unexpected result generated by the original FPOM, in which the real option would have a negative value. It further analyses its reasons and suggests a way to overcome it, by using th...
متن کاملBehavioral implications of providing real incentives in stated choice experi - ments
This paper explores the potential impacts of introducing real economic incentives in Choice Experiments (CE). While many others have investigated such impacts before, the majority of the literature has focused solely on mitigation of hypothetical bias. We contribute to this literature by widening the scope of research to other behavioural aspects where consumers in CE are often found to deviate...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Applied Mathematics and Decision Sciences
سال: 2009
ISSN: 1173-9126,1532-7612
DOI: 10.1155/2009/238196