International Conference on Eurasian Economies
24-25 August 2021 – Istanbul, TURKEY and ONLINE
Paper properties
Paper ID : 2512
Status : Paper published
Language : Turkish
Topic : Microeconomics and Entrepreneurship
Presenter: Asst. Prof. Dr. Süreyya Yılmaz Özekenci
Session : 6C Girişimcilik
Investment Project Evaluation By Real Option Method: Example of Entrepreneurship Investment
Reel Opsiyon Yöntemiyle Yatırım Projesi Değerlendirmesi: Girişimcilik Yatırımı Örneği
- Prof. Dr. Hatice Düzakın (Çukurova University, Türkiye)
- Asst. Prof. Dr. Süreyya Yılmaz Özekenci (Çağ University, Türkiye)
Abstract
The real option method, which emerged in the 1980s and is based on financial options, has been heavily involved in the literature since the early 2000s. Calculated by adding option value to investments in real assets, this method offers managers opportunities to evaluate the investment project. While the traditional capital budgeting method cannot be changed during the decision project process taken when evaluating the investment project, the real option method can be changed throughout the project process. The reason for this situation is that the real option method does not ignore the managerial flexibility. The reason for this situation is that the real option method does not ignore the managerial flexibility. In this study, these two methods in the literature are examined according to the types of projects.
JEL codes: G31
Düzakın, Hatice, Yılmaz Özekenci, Süreyya (2021). "Investment Project Evaluation By Real Option Method: Example of Entrepreneurship Investment" in Proceedings of International Conference of Eurasian Economies 2021, pp.466-474, Istanbul, TURKEY and ONLINE.
DOI: https://doi.org/10.36880/C13.02512
