The real options as valuation methodology for a project in the electrical sector

The real options as valuation methodology for a project in the electrical sector

This paper intends to apply the theory of real options in a construction project for a small hydroelectric power station in Colombia. The calculation of the net present value and the internal rate of return indicate that the project is viable, however, these methodologies are unaware of the option o...

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Bibliographic Details
Main Authors: Armando Lenin Támara Ayús, Julián Forero Corrales, Isabella Gil Osorio, Paula María Almonacid Hurtado
Format: Article
Language:English
Published: Universidad EAFIT 2019-11-01
Series:Ecos de Economía
Subjects:
real options
expansion option
binomial trees
energy sector
Online Access:http://publicaciones.eafit.edu.co/index.php/ecos-economia/article/view/las-opciones-reales-como-metodologia-de-valoracion-de-un-proyecto-en-el-sector-de-energia/las-opciones-reales-como-metodologia-de-valoracion-de-un-proyecto-en-el-sector-de-energia

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http://publicaciones.eafit.edu.co/index.php/ecos-economia/article/view/las-opciones-reales-como-metodologia-de-valoracion-de-un-proyecto-en-el-sector-de-energia/las-opciones-reales-como-metodologia-de-valoracion-de-un-proyecto-en-el-sector-de-energia

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