Contents

A Real option approach to valuating infrastructure investments

Lee, Hyuk

  • 906 ITEM VIEW
  • 190 DOWNLOAD
Abstract

A correct methodology for valuing an infrastructure investment is essential to both of two parties, government and private concessionaires, in order to allocate the project risks reasonably and fairly and makes the project successful. Real Option Analysis (ROA) can be a good approach for appropriately valuing an infrastructure investment because it can capture the "uncertainties of the project and flexible managerial strategies" (Dixit, and Pindiyck, 1994) during the investment horizon by using option pricing model.
This study investigated the value of project using DCF method and ROA approach, the cause of the gap, and project value from ROA approach when adding government guarantees such as MRG and the option to abandon. Additionally, this paper identified how the project value from ROA approach would change when variable assumptions were adjusted. In conclusion, what these results can suggest to the policy makers was covered.

Department
KDI School, Master of Public Policy
Issue Date
2011
Publisher
KDI School
Description
Thesis(Master) --KDI School:Master of Public Policy,2011
Pages
iv, 37 p.
URI
https://archives.kdischool.ac.kr/handle/11125/30344
Type
Thesis
Files in This Item:

Click the button and follow the links to connect to the full text. (KDI CL members only)

qrcode

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

상단으로 이동