Economic Evaluation Model of Grid Construction Project Based on Real Option Theory

Abstract:

This paper combined with the real conditions on investment and decision-making of grid construction. Considering the uncertainty of project, we applies real option theory into evaluation model of grid construction and establishes evaluation model of grid construction based on real option theory. The result indicates that proper application of real option method into the investment decision-making model of grid construction can better enable grid to obtain profit from investment uncertainty, which provides larger profit and opportunity for grid corporation.

• Periodical: Advanced Materials Research (Volumes 1008-1009)
• Pages: 800-803
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1008-1009.800
• Online since: August 2014
• Authors: Liang` Chen, Zhi Yan Liu, Kang Ren Huang, Min Du
• Keywords: Binary Tree, Evaluation Model, Grid Construction Project, Real Option

References

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