A Research On Digital Preservation Project Evaluation And Investment Decision Based On Real Option

Long-term preservation of digital resources, namely the use of certain strategies and means to save the contents of the form and function of the accessibility of digital resources. Studies which had been carried out mainly cover the long-term preservation of digital technology, preservation strategies, preservation and maintenance of the system to build, aspects such as preservation organization system framework, policies and laws. However, there are few scholars able to study investment behavior from an economic perspective of digital preservation; digital preservation is actually a class of investment projects, investment in such projects with a high degree of uncertainty and irreversibility of high-risk sexual characteristics, therefore it is important to use scientific theory to guide the investment decisions. The traditional evaluation method, based mainly on DCF, usually undervalues the value of digital preservation investment project, because it always neglects the flexibilities and the uncertainties of project benefits, interest rate, etc. As a result, it cries out for building an evaluation method of digital preservation investment project to reflect the uncertainties and flexibilities. So this paper studies on the evaluation method of digital preservation investment project based on real option. The results of this research are as follows:(1) Reveals the formation mechanism of digital preservation investment project based on real option. This paper analyzes the options properties of digital preservation investment project and the factors which can affect the value of options;(2) Analyses real option embedded in digital preservation project, builds two investment rule models of digital preservation project with discrete wave and random wave income based on real option, carries on case study, and concludes that digital preservation project income wave ratio and increasing ratio have a significant influence on real option value and investment rules.