Publication
Title
General trigger values of optimal investment
Author
Abstract
We consider a general real option model which allows finite values for all parameters influencing the value of waiting in case of uncertain and irreversible investment. We show that the traditional net present value rule and the commonly known Dixit-Pindyck approach are nested in the same general real option model and hence produce optimal investment decisions only in their specific scenario.
Language
English
Source (journal)
Applied economics letters. - London
Publication
London : 1999
ISSN
1350-4851
Volume/pages
6:5(1999), p. 287-290
ISI
000080747600007
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 22.11.2012
Last edited 08.09.2017
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