| Summary: | 碩士 === 朝陽科技大學 === 財務金融系碩士班 === 92 === In recent years our country economy has been impacted by international business depression, and influenced by the tides of globalized economy and free economy. Taiwan industries meet keen international competitions. The state-owned business units face double pressures from interior and external competitions. The organs are forced to be privatized in order to boost competition superiority and meet challenges.
A business unit is usually assessed by Net Present Value. In this essay
I try to use Real Option Perspective to assess extremely high uncertainty of privatized project so as to understand the value of overall investment. Taking into the consideration of Real Option Perspective, the conventional “Net Present Value Assessment” can reveal more on the true worth of the investment project. It tells us that conventional assessment on the investment project does not take Management Flexibility into consideration. Thus, the investment worth is devalued. In my research
I find some individual cases on privatizing the companies. The values are negative if calculated by conventional Net Present Value Method. It means this project is not worth for investment. However, if Real Option Perspective is added, we can find a big hidden flexible worth.
Besides, from the sensibility analysis of my research, it is understood that the higher the uncertainty of investment environment is, namely the bigger the variable is, the higher the worth of Real Option Perspective is.
It reflects the true character of Real Option Perspective. In other words future market changes will bring positive contributions to the investment projects.
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