Research Of The Value Evaluation Of Young Forest Assets Based On Real Option Theory

In recent years,forestry assets evaluation has caused widespread concerns and has become the hot topic in economics driven by the construction of ecological civilization.Forestry is the main part of current national economy and the president also attach more importance to it,as he has put forward a scientific thesis that lucid water and lush mountains are invaluable assets.Young forest growth is of more value for academic research for it accounts for a large proportion in our country based on forest age.The way of its value assessment is different from the general ones for it is featured by real options.The assessment results may cause fail decision or wrong judgment if it is evaluated by traditional estimation ways without taking the real option into consideration.Besides,there are many uncertainties increments and managerial flexibilities in the young forest growth project.Thus,it is necessary to choose another rational way to evaluate.The thesis will focus on the young forest growth with compressively analysis from the prospective of real options,to build a value assessment model with real options for forestry asset evaluation on the basis of binary tree theory,and prove that it is scientific and reasonable to evaluate young forest growth asset values in the way of real option model.The thesis mainly discusses the background and significance of this project at the beginning.The secondary is the introduction of the research subject,which states the position and the problem in detail preparing for the following study.Then,the characteristics of the young forest growth and its assessable way can be explained when combined with the relevant theory of assets appraisal.Afterwards,the thesis mainly focus on the introduction of the real option theory to show the difference between real option theory and traditional value evaluation theory,and to prove the feasibility study evaluation of the young forest from the perspective of,the real option theory and expound the modeling logic.After that,the binary tree model will be used for case analysis to explain its scientific nature of real option theory in the evaluation of young forest assets will be explained by model building.The final part is the conclusion of research findings and the recognition of weaknesses and limitations.I have gained some research results from this project.The application of the binary tree model in the study of young forest assets evaluation can be also provided to the study in other similar areas.Besides that by comparing the valuation methods of related assets,the paper illustrates the uniqueness and feasibility of real option theory in the valuation of forest rights,and focuses on young forests,and evaluates them with its characteristics and real option theory.