Finance and Credit

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

eLIBRARY.RU
Biblioclub

Home

Journals

Finance and Credit

25(553) - 2013 July

Development and justification of financial plans for upgrading company's equipment based on methods of real options valuation

ISSUE 25, JULY 2013

Available online: 2 July 2013

Subject Heading: MODELING IN ECONOMICS

JEL Classification:

Trifonov U.V. Doctor of Economics, Professor, Dean of the Economic Faculty, the Nizhniy Novgorod State University named after N.I. Lobachevsky
decanat@ef.unn.ru

Yashin S.N. Doctor of Economic Sciences, Professor, Head of the Department of Innovation Management, the Nizhniy Novgorod State University named after N.I. Lobachevsky
jashin@52.ru

Koshelev E.V. PhD in Economics, Associate Professor, the Department of State and Municipal Management, the Nizhniy Novgorod State University named after N.I. Lobachevsky
ekoshelev@yandex.ru

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

View all articles of issue

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

ISSUE 9

SEPTEMBER 2026