Abstract
A real-option based valuation method has been developed for multi-stage development projects which allow flexible stage-wise go/stop judgments. The proposed method measures the economic value of projects from potential future cash flow produced by them, and is characterized by following four functions: (1) Corporation of technical and market risks into project valuation, (2) Quantification of a project portfolio value, (3) Modeling of correlation between individual projects in a portfolio, and (4) Control of project portfolio risk with a risk index.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: IEEJ Transactions on Electronics, Information and Systems
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
