| It is a complicated process to evaluate a capital investment project. It relates on not only external environments of markets, resources, and product competitions, but the enterprise strategies and projects itself as well. The central purpose is to provide the information of the project's values to invitees and administrators, so that they can improve the investment strategies and decisions. It has been known that the discount net cash flow is a commonly used method for evaluating capital investment projects. It is simple to be understood and easy to be implemented. This article studies the appliance that real-options approach estimate power building's investment. In this paper, firstly, the issue is put forward by analyzing the limitation, by analyzing the options thought and real-options theory and method that financial field puts it forward at presents, we consider to estimate electric building arrestment by real-options approach. And then, compares the result of real-options to traditional approach in the investment estimating King-Nuo transmission and transformation electricity line project. |
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