Analysis of investment options through real options

  • Kevin Yair Lamilla Universidad Estatal de Milagro
Keywords: building, project evaluation, Real options, valuation

Abstract

Given the conditions that present the traditional methods of valuation of investments that are accounting representation, and the difficulty that is presented to adapt to changing environments in regards to investments, the real options method is investigated an appropriate one to establish a correct decision making in which considers the intangibles and operational flexibility as the elements that can alter the decision to carry out an investment project. The present article represents a general look at the real options, their definitions, models, typology, and methods of appropriate inquiry so that at the end it presents an attention to the sector of the construction of the project in the decision making of the entity. The methods established in real options are adequate and determinant for the evaluation of projects, given their support and inclusion of elements in transparent, it is highlighted how a success of the valuation depends on the supposed information available to perform valuation methods in the entity.

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Published
2018-09-30
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Abstract 239
PDF (Español (España)) 52
How to Cite
Lamilla, K. Y. (2018). Analysis of investment options through real options. Ecuadorian Science Journal, 2(2), 5-8. https://doi.org/10.46480/esj.2.2.14
Section
Research Paper
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