Evaluating investment projects in mining industry by combining discount method and real option valuation
نویسنده
چکیده
Modern specialised literature and business practice differentiate an increasing number of methods for evaluating investment projects, but the majority of authors adopted the general division onto non-discount (classical, traditional) methods, discount methods, and methods for preliminary project evaluation. Evaluation results are the basis for making positive or negative investment decisions.This paper provides an overview of the dynamic methods for evaluating investment projects in mining industry as well as the examples of their application in practice.
منابع مشابه
ارائه روشی جهت تخمین پارامتر نوسان پذیری برای کاربرد در تئوری ارزش گذاری اختیارات واقعی(مطالعه موردی- پروژه های پارس جنوبی)
Traditional project evaluation based on discounted cash flow analysis which ignores the upside potentials to an investment from managerial flexibility and innovation is not a suitable approach for evaluating high risk projects such as projects in oil industry. Nowadays, real options valuation approach that borrows ideas from financial options attracts the expert's attentions. In spite of the ...
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