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Chinese Journal of Management Science ›› 2006, Vol. ›› Issue (1): 21-24.

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The Study of Multiple Projects Investment Decision Based on Real Option

FAN Xia, LIU Xi-lin   

  1. Management Institute, Northwest Polytechnical University, Xi'an 710072, China
  • Received:2005-01-10 Revised:2005-10-25 Online:2006-02-28 Published:2012-03-07

Abstract: The paper incorporates real options concepts into enterprise's decision and constructs an option-based 0-1 integer programming model to evaluate multiple projects that compete with each other.Using the model,enterprise can invest project with time flexibility and optimizes the value of investment portfolios.

Key words: real options, project portfolio, 0-1 integer programming

CLC Number: