The Study Of Valuing Environmental Logistic Warehousing Strategic Investments And Decisions

In recent years, under the actively promotion for the"Environmental Logistic"by Chinese Government, many logistic enterprises are faced with lots of choices of the strategic investment projects. However some environmental logistic strategic investment projects have a very high uncertainty and a huge amount of investment. Once faced with the dramatic fall in market demand, enterprises will incur heavy losses. Thus, in such conditions, the use of reasonable analysis method to value the environmental logistic warehousing strategic investment as well as to make a correct decision will directly affect the success or failure of logistic enterprises'investment.This thesis bases on two types of analysis method for the decision of the strategic investment. It shows traditional net present value analysis method is not applicable for the high risk investment in environmental warehousing project, however, real options analysis method reveals its incomparable superiority.? Thus how to use real options analysis method to evaluate the environmental warehousing strategic investment project accurately will have a bearing on the future development of the logistics enterprises. The example of how real options approach with specific cases is showed in this thesis. And we use binary tree option pricing model to value the investment at the same time to explore deeper into the more real options in the case of application development. The study of this thesis revealed that taking the analysis method of strategic choice options for the environmental warehousing investment for a logistic company can avoid the risks arising from market volatility to some extent. Thus the option right that the enterprises owned in the investment process and the management man-made option right pre-investment will significantly increase the option value of the investment projects.