The Positive Research On Real Option Application In Communication R&D Project

Currently, products and technology updates in communication industry become very fast, every three years reforming on average and accompanied by the fierce competition between industries. Therefore, the correct and reasonable assessment of R&D project investment is essential for the enterprise or the company to survive and development throughout the industry. Research and development of new technology and new products become the company’s core competitiveness. However, traditional analysis NPV method usually ignored project market strategic value and added value brought by management. Thereby the overall value of a R&D project evaluation will be underestimated. Meanwhile the risk-value also cannot be well process and quantitative during R&D project. But the unknown risks and management value in the project can be defined and quantified by the Real Option theory, so the company can grasp the development opportunity in the field of communication complexity, improve the core competitiveness. In this paper, according to the characteristics in the field of communication within the R&D project. Proposes a quick judgment is suitable for real option evaluation process selection and model in the enterprise, meanwhile Option value with Two Binomial Tree Model&B-S model will be used in the whole R&D project multi-stage and then the results will be compared with the traditional NPV value assessment project. Finally, combined with the actual case to verify the real option theory in the field of communication within the R&D project application advantage.