Abstract On the basis of high risk and multistage of venture investment, accounting for the uncertainty both in the cost and benefit, a new real option model was developed. Moreover, the comparison of traditional net present value method and sensitive analysis of main parameters were given. The result shows that this model promotes the science of decisionmaking of venture project investment due to the waiting value introduced by uncertainty of cost and benefit.
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Received: 07 November 2007
Published: 28 November 2008
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