The Application Research Of Real Option In The Investment Decision Of YJ Highway Project

The highway construction affects the development of national economy and the improvement of people's living standard to a-certain extent, to promote and is very important to improve the economic pattern. Highway projects with large amount of investment, investment irreversibility and uncertainty of the future and other characteristics, the net present value (NPV) of traditional investment decision method as the core of the assessment of the highway project value, is actually a hypothetical project cannot be postponed and cannot be cancelled, uses a static view of the project evaluation, not to measure the effects of uncertainty on the project, has been more and more difficult to evaluate the real value of investment project of highway. The real options in the evaluation of uncertain project, because the project management flexibility of quantified, so under normal circumstances do not appear to underestimate the value of the phenomenon.In this paper, in view of the highway projects with uncertainty, real option is introduced to the YJ highway project investment decision, project the growth option value is calculated with the B-S option pricing model, the real option method, the value of YJ expressway project including project net present value and inherent value of growth options, therefore, is of practical significance to the application the research of real option method in Expressway YJ project.The paper summarizes the real option theory, through the analysis of the traditional investment decision methods of real options the defects and advantages, determine the investment decision method is applied to the project. In the part of case analysis, the real option application in Expressway YJ projects are analyzed, and the application of real options framework under the guidance of the identification of real options, the calculation process of option pricing model, the option value. Finally, a comprehensive analysis of the project according to the calculated results. In this paper, through the analysis of the case, to prove that under certain conditions, can enhance the accuracy of the investment decision by the option value of project, to provide investors with accurate and strategic investment evaluation method.