Abstracting and IndexingРИНЦReferativny Zhurnal VINITI RAS Worldcat LCCN Permalink Google Scholar Online availableEastvieweLIBRARY.RU Biblioclub |
Development and justification of financial plans for upgrading company's equipment based on methods of real options valuation
Available online: 2 July 2013 Subject Heading: MODELING IN ECONOMICS JEL Classification:
A method for decision of the problem of financial mission statement to evaluate effects of projected upgrading equipment of a manufacturing company is offered. For this the project is analyzed as an Asian real option with constant business volatility. The problem is solved using the Black-Scholes model, a refined and modified binomial model and a modified trinomial model. It is demonstrated that the most accurate valuation of the option and the entire project in general is provided by the trinomial model. Keywords: upgrading equipment, real option valuation, Asian option, constant volatility, binomial model, trinomial model |
ISSN 2311-8709 (Online)
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