Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1144262 | Systems Engineering - Theory & Practice | 2008 | 6 Pages |
Abstract
A combination approach based on real option and CAPM model is presented for illuminating the value of staging investment in early-stage high-technology growth-oriented companies. Process of stage investment has been simulated by Cossin's mix option model, and supplemented investment triggers and investment cost have been obtained. Compared with one-off investment, it is evident that stage investment cost is lower than that of one-off investment, as well as risk.
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