Real Options Theory To Investment In Water Conservancy Construction Projects In Decision-making

The dissertation demonstrates the necessity and feasibility of investment decision on the construction of water conservancy projects, on the basis of the water conservancy projects' economical and investment decision characteristic analysis as well as the concept and classification of real options method. The comparative analysis is adopted for traditional investment decision means and real options method in the application of water projects construction assessment. This dissertation analyses the classification and characteristic of the involved real options in the investment processing of water conservancy projects, forms the basic framework of using real options in investment decision making of water conservancy projects on the basis of real options' two pricing models as well as the own characteristic of water conservancy projects and initially works out the real options pricing model for investment decision of water conservancy projects.