A Fuzzy Real Options Model for R&d Project Evaluation
نویسندگان
چکیده
A major advance in development of project selection tools came with the application of options reasoning to R&D. The options approach to project valuation seeks to correct the deficiencies of traditional methods of valuation through the recognition that managerial flexibility can bring significant value to a project. The main concern is how to deal with non-statistical imprecision we encounter when judging or estimating future cash flows. In this paper we develop a model for valuing options on R&D projects, when future cash flows and expected costs are estimated by trapezoidal fuzzy numbers.
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