Reel options and approach for evaluation of investment decisions and an application sample for apparel industry
Articles > Article ยท 2007
Authors: Diren Mecit, Turan ATILGAN
TEKSTIL VE KONFEKSIYON, Journal Indexed in SCI Expanded, International, 2007, vol 17, pp 200-206
Summary
Evaluation of investment decisions are vitally important for the firms. Traditional methods for investment decisons accept static assumptions and analyse the investment decisions according to these assumptions. However, in real life projects have a dynamic structure. Evaluation of investment decisions with real options approach can provide to consider elasticities, risks and uncertainties and therefore to obtain more realistic results. In this study evaluation of investment decisions with real options is investigated, evaluation of investment decision of a textile firm with traditional method and real options approach is described and tested by a sample case.