Traditional DCF versus real option for strategic investment decisions valuation
Author
Source
Revue des Sciences Economiques, de Gestion et Sciences Commerciales
Issue
Vol. 12, Issue 1 (30 Jun. 2019), pp.656-668, 13 p.
Publisher
Mohamed Boudiaf-Masila University Faculty of Economic Commercial and Management Sciences
Publication Date
2019-06-30
Country of Publication
Algeria
No. of Pages
13
Main Subjects
Business Administration
Economy and Commerce
Topics
Abstract EN
In an economic environment characterized by rapid change and great uncertainty the static nature of the conventional net present value and discounted cash flow (DCF) method becomes inadequate to set up an effective investment strategy.
this paper tries to introduce the real options approach as a novel means of evaluating investment decision and provides a good solution on the uncertain problems.
real options assume a dynamic series of future decisions where management has the flexibility to adapt given changes in the business.
however, the complexity of the real option models makes them difficult to apply in real world.
American Psychological Association (APA)
Khayri, Zahiah. 2019. Traditional DCF versus real option for strategic investment decisions valuation. Revue des Sciences Economiques, de Gestion et Sciences Commerciales،Vol. 12, no. 1, pp.656-668.
https://search.emarefa.net/detail/BIM-908218
Modern Language Association (MLA)
Khayri, Zahiah. Traditional DCF versus real option for strategic investment decisions valuation. Revue des Sciences Economiques, de Gestion et Sciences Commerciales Vol. 12, no. 1 (2019), pp.656-668.
https://search.emarefa.net/detail/BIM-908218
American Medical Association (AMA)
Khayri, Zahiah. Traditional DCF versus real option for strategic investment decisions valuation. Revue des Sciences Economiques, de Gestion et Sciences Commerciales. 2019. Vol. 12, no. 1, pp.656-668.
https://search.emarefa.net/detail/BIM-908218
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 667-668
Record ID
BIM-908218