The discrete option game approach of investment project evaluation

Option game evaluation model of investing project is a theoretical result that the interaction of option game thought and project evaluation. To balance the contradiction between the simplicity of project possibility discretion and the complexity of option game model, searching simple evaluation model and building right discretion principle is the main approach of option game evaluation theory development. To make practical project evaluation, this paper presents the discrete option game approach of investment project evaluation which is based oil Smit and Ankum (1993), Smit and Trigeorgis (1997) and their most recent researches. The writer thinks that they have developed the special evaluation framework of R&D investment project based oil the discrete option game analysis.