The Real Options Approach In Applied Research, Evaluation Of Risk Of Investment Decisions

Aim at the question that the traditional method of evaluation can't appraise the uncertainty of the risk project and flexibility of the investment project effectively, which concern risk and profit faced in the static methods. The paper used of real option into investment appraisal of the venture capital. Carried on research and calculation with research methods together to appraise value of the venture investment project. It is scientific to make and appraise the result even more.This paper has explained the principles of the deciding price of real option method at first, the mode of thinking and suitable condition, and then analyzing suitability of real option appraising value of the venture investment project. On this basis, the paper study the option characteristic of the venture investment project, And has analyzed the origin of the venture investment project option characteristic produces and limitation of the traditional method of evaluation, then proved the theoretical foundation that the real option method combining with investment decision of the venture. Secondly according to characteristic of venture investment ,the multi-stage compound real options model is build to appraise the investment decision of venture capital. Compared with existing model, this model has strong operating nature, calculate simply and can solve touching off time optimumly of risk investment. Appraising to value of the venture investment project has better practicability. Finally Carrying on real example analysis ,and examining the model.