The PF-NA Distinguishing And Valuing Model Of Real Options And Demonstration Study

We live in an uncertain world. The investment opportunity which has the most value always come along with a lot of uncertainty. The growth of the corporation value depends on investment-decision making high-qualitatively under uncertainty. The managers always loss the import investment opportunity because that they think of the tactics, strategy and valuing differently. While the thinking way of real option can make them contacted. This making the manager can make a right decision and avoid risks at the same time. So, distinguishing and valuing the real options in the investment is very import. This paper deduced THE PF-NA DISTINGUISHING AND VALUEING MODEL OF REAL OPTIONS justly based on this aim and demonstrated it by an example: "should The Jinsheng Capital Company invest Huager life Ltd. Company?". The demonstration study indicated that THE PF-NA DISTINGUISHING AND VALUEING MODEL OF REAL OPTIONS could help the investor make right decision nicely. The originalities of this paper are as follows: (1) Deducing THE PF-NA DISTINGUISHING MODEL OF REAL OPTIONS using profit function originally. (2) The others documents think that the executing price of the real option is the cost of investment when executing the real option. This paper has brought forward a new theory about the executing price originally in THE PF-NA VALUEING MODEL OF REAL OPTIONS. This paper thinks that the executing price X of the growth real option should be X = PVno( T )+IT and the executing price X of the exit real option should be the market price. So, this paper has deduced THE PF-NA VALUEING MODEL OF REAL OPTIONS again using the Moving No-Arbitrage Equilibrium Analysis Technology and the Binomial Tree Model.