The Theory Of Real Option And Its Applications Of Investment Decision In A Telecommunication Enterprise

With the IT Times' coming, and the fast development of new technology, enterprise management environment constantly develops and varies, which demands enterprise to treat the risk and uncertainty timely and dynamically, focus on market, choose investment direction correctly, control investment scale rationally, and avoid the investment risk. The valuation method of traditional enterprise investment decision is mostly net present value method, project payback method, and etc, which adapts to valuate certainty investment, and low risk project. However, it can't make the good use of flexibility strategy directs people to deal with the uncertainty problem of investment, exists great defect and shortage.Generally, the investment effect of our country's enterprise is below. Besides the factor of institutions, the back ward of the investment mind and decision method is another important factor. It is a key to solve the above paradox, which introduces new management mind. The article introduces the mind of real option to modify the traditional project investment valuation method, to supply a new tool for the analysis of project investment decision. The article firstly introduces the research background, purpose, meaning, and summarizes related documents. And then, the article discusses real option theory, points the defect and shortage of the traditional investment decision method, and derivate the option theory and the real option method. Then the article discuses the option pricing model, analyses and compares the important theory and expressions, especially the application of B-S option pricing model in enterprise strategy investment decision. At last, the article applies real option theory to valuate enterprise investment decision. The article introduces some general status of the enterprise and focus on the coming important investment project. After analyse the characters and uncertainty of the new project, it is found that use of the traditional NPV valuation method will lose this investment chance. The more reasonable results is finally based on the new investment strategy model from the application of real option theory, and the option to expand model.Considering the author's work surrounding, this article applies the real option valuation to the investment strategy of China Unicom Cooperation Qingdao Branch, also applies the option pricing theory to value real option, which overcomes the defect and shortage of traditional investment valuation method. This breaks through the traditional finance strategy, also makes enterprise investment decision valuation method more science and effect.