Research On The Evaluation Method Of The Investment Value Of The Used Car Business Based On Real Options

With the rapid development of China’s auto market has brought the rapid growth of the private car retains the quantity,and the second-hand car trading volume growth is expected in 2020 China’s second-hand car market space in the future trillion,the compound growth rate will reach 22%-27%.Because the second-hand car industry in the early stages of development,the market environment,business models,and there are large uncertainties,and commonly used in the industry of its net present value theory for the conventional method based unable to properly handle the uncertainty,are often unable to scientific assessment the value of second-hand car business investment,restricted the enterprise to carry on the second-hand car business investment enthusiasm.How to solve the used car project uncertainty and the traditional value evaluation theory of contradiction,became one of the used car business investment value must correctly handle the problem.This article tried to use the real option theory,combined with traditional value assessment theory,make up for its deficiency in uncertainty processing,build used-car business investment based on real option value assessment framework,then use used investment project case to verify the value evaluation model,fully demonstrates the real option evaluation model of this paper is more able to objectively reflect the investment value of used car business.This paper puts forward that the used car business investment value evaluation method based on real options,better to deal with the uncertainty and the flexibility of management problems of the project,more reasonable to assess the investment value of a used car business,to provide second-hand car business investment decisions more scientific decision-making basis.