Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=51559#.VG2ns2fHRK0 Author(s) Yi-Long Hsiao 1 , Li-Ling Chen 2 Affiliation(s) 1 Department of Finance, National Cheng Kung University, Taiwan . 2 Department of Food and Beverage Management, Tatung Institute of Technology, Taiwan . ABSTRACT We discuss the valuation of investment project in a firm applying a real option method with abandonment and reset investment proportion. We take the depreciation value of the facilities and the research and development (R & D) fee into consideration. Our contribution is to derive a pricing model of two-stage optimal decisions allowing abandonment and reset investment proposition. Different f...
Scientific Research Publishing