Abstract
A large number of random factors in the process of the coal bed methane (CBM) development project can lead to a high degree of risk and uncertainties, and the traditional investment decision-making methods (for example DCF method) ignored the value of investment opportunities which were brought by the project environment's uncertainties and management flexibilities. Introducing real options method, we analyzes options' characteristics of CBM project in this paper, and constructed the investment decision-making model based on the postponement strategy, and illustrates the application of the model through case studies. So this paper provides new ideas and methods for investment decision-making of coal-bed methane project development.
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