Real options valuation of investment projects
Keywords:
Scenarios, Uncertainty, Risk, Volatility, Cash flows, Underlying assets, Derivates, Real options, Financial options, Discount rate, Free risk rate, Generation of value, Net present valueAbstract
Until a few years ago the models that were developed for the assessment of investment projects did take into consideration an environment sufficiently stable so as to project with some degree of certainty what could occur during the period of time of the duration of the project. In recent years other quite interesting methods have appeared that might be adequate for some types of companies or projects, such as the application of the Options’ Theory. The latter is useful for the assessment of a certain type of projects where cash flows can be substantially modified in the event certain decisions are taken after the financial assessment is conducted. This methodology does involve a certain degree of flexibility the former must have.
References
Bautista, R. & Castillo, M. (2010). Evaluación de Proyectos mediante opciones reales. Colombia: Editorial Uniandes.
Contreras, H. & Muñoz, G. (2012). Opciones reales. Enfoque para las decisiones de inversión bajo alta incertidumbre. Colombia: Ediciones U.
De Lara, A. (2005). Productos derivados financieros. México: Noriega Editores México.
Ketelhöhn, J., Marín, N. & Montiel, L. (2005). Inversiones análisis de inversiones estratégicas. Colombia: Editorial Norma.
Ramírez, J. (2011). Evaluación Financiera de Proyectos. Colombia: Ediciones U.
Contreras, H. & Muñoz, G. (2012). Opciones reales. Enfoque para las decisiones de inversión bajo alta incertidumbre. Colombia: Ediciones U.
De Lara, A. (2005). Productos derivados financieros. México: Noriega Editores México.
Ketelhöhn, J., Marín, N. & Montiel, L. (2005). Inversiones análisis de inversiones estratégicas. Colombia: Editorial Norma.
Ramírez, J. (2011). Evaluación Financiera de Proyectos. Colombia: Ediciones U.
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Published
2012-12-01
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Artículos
