Russian company investment project valuation with the built-in abandon option
This paper is dedicated to development of models and numerical methods for evaluating investment projects of Russian companies using the real options model. In the current economic conditions, it is highly necessary to properly reflect the flexibility of the company’s in adapting management decision...
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| Format: | Article |
| Language: | Russian |
| Published: |
Russian Academy of Entrepreneurship
2020-01-01
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| Series: | Путеводитель предпринимателя |
| Subjects: | |
| Online Access: | https://www.pp-mag.ru/jour/article/view/247 |
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| _version_ | 1850045801807478784 |
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| author | D. V. Vorotnikova M. E. Detkova M. A. Khalikov |
| author_facet | D. V. Vorotnikova M. E. Detkova M. A. Khalikov |
| author_sort | D. V. Vorotnikova |
| collection | DOAJ |
| description | This paper is dedicated to development of models and numerical methods for evaluating investment projects of Russian companies using the real options model. In the current economic conditions, it is highly necessary to properly reflect the flexibility of the company’s in adapting management decisions in response to changing market conditions. In this regard, the traditional models of investment analysis can be supplemented, and in some cases replaced by alternative approaches, for example, by estimating the present value of a call (put) option using the Black-Scholes-Merton formula. The above given statement determines the relevance of the study. The paper presents theoretical and practical aspects of the use of traditional and optional approaches to the evaluation of investment projects. It also presents practical calculations for investment project related to implementation of automated information system for compiling consolidated statements for a group of companies whose assessments need to take into account a real option to abandon the project. |
| format | Article |
| id | doaj-art-e296ea0edc79434b87dae59f97ab61b9 |
| institution | DOAJ |
| issn | 2073-9885 2687-136X |
| language | Russian |
| publishDate | 2020-01-01 |
| publisher | Russian Academy of Entrepreneurship |
| record_format | Article |
| series | Путеводитель предпринимателя |
| spelling | doaj-art-e296ea0edc79434b87dae59f97ab61b92025-08-20T02:54:36ZrusRussian Academy of EntrepreneurshipПутеводитель предпринимателя2073-98852687-136X2020-01-0104187104246Russian company investment project valuation with the built-in abandon optionD. V. Vorotnikova0M. E. Detkova1M. A. Khalikov2Russian Economic University. G.V. PlekhanovRussian Economic University. G.V. PlekhanovRussian Economic University. G.V. PlekhanovThis paper is dedicated to development of models and numerical methods for evaluating investment projects of Russian companies using the real options model. In the current economic conditions, it is highly necessary to properly reflect the flexibility of the company’s in adapting management decisions in response to changing market conditions. In this regard, the traditional models of investment analysis can be supplemented, and in some cases replaced by alternative approaches, for example, by estimating the present value of a call (put) option using the Black-Scholes-Merton formula. The above given statement determines the relevance of the study. The paper presents theoretical and practical aspects of the use of traditional and optional approaches to the evaluation of investment projects. It also presents practical calculations for investment project related to implementation of automated information system for compiling consolidated statements for a group of companies whose assessments need to take into account a real option to abandon the project.https://www.pp-mag.ru/jour/article/view/247investment projectfinancial optionblack-scholes-merton modeldiscounted cash flows analysisreal optionabandon option |
| spellingShingle | D. V. Vorotnikova M. E. Detkova M. A. Khalikov Russian company investment project valuation with the built-in abandon option Путеводитель предпринимателя investment project financial option black-scholes-merton model discounted cash flows analysis real option abandon option |
| title | Russian company investment project valuation with the built-in abandon option |
| title_full | Russian company investment project valuation with the built-in abandon option |
| title_fullStr | Russian company investment project valuation with the built-in abandon option |
| title_full_unstemmed | Russian company investment project valuation with the built-in abandon option |
| title_short | Russian company investment project valuation with the built-in abandon option |
| title_sort | russian company investment project valuation with the built in abandon option |
| topic | investment project financial option black-scholes-merton model discounted cash flows analysis real option abandon option |
| url | https://www.pp-mag.ru/jour/article/view/247 |
| work_keys_str_mv | AT dvvorotnikova russiancompanyinvestmentprojectvaluationwiththebuiltinabandonoption AT medetkova russiancompanyinvestmentprojectvaluationwiththebuiltinabandonoption AT makhalikov russiancompanyinvestmentprojectvaluationwiththebuiltinabandonoption |