Title :
Application of real option approach to investment decision-making of building projects
Author :
Baozhu, Sheng ; Shiliang, Xu
Author_Institution :
Anhui Univ. of Archit., Hefei, China
Abstract :
The research is to help building enterprise make plan and manage their strategy investment. Real option, as a new theoretical approach, is broadly applied in investment decision, finance management etc. In this paper the application of real options in building projects investment is discussed based on binomial tree model and B-S model which can improve the defect of traditional methods and make building projects investment become more reasonable.
Keywords :
construction; decision making; investment; project management; strategic planning; trees (mathematics); B-S model; binomial tree model; building project investment; investment decision making; real option approach; strategy investment; Buildings; Companies; Decision making; Investments; Mathematical model; Pricing; Uncertainty; building projects investment; investment opportunities; real option; uncertainties; valuation;
Conference_Titel :
Management Science and Industrial Engineering (MSIE), 2011 International Conference on
Conference_Location :
Harbin
Print_ISBN :
978-1-4244-8383-9
DOI :
10.1109/MSIE.2011.5707506
