Irreversibilidad e incertidumbre de las decisiones financieras en i&d
Irreversibility and uncertainty of the financial investments on r&d
MPRA Paper from University Library of Munich, Germany
The traditional methods for the valuation of investments are based on the possibility of calculating discount cash flows. The present paper analyses the problem associated to investments on innovative products, which require an important demand of R&D. The mentioned investments present irreversibility, flexibility and uncertainty characteristics. Therefore, it is proposed the Real Options methodology. To carry it out, investigations processes and their relationship with the financial market are described, with the aim of dealing with the irreversibility and the possibilities of making flexible a project. Finally, the different valuation methods are reviewed, focusing on the Black & Scholes formula to consider the options to wait, abandon, expand and suspend. It is necessary to take into account that the mentioned criteria does not replace the traditional valuation methods (especially NPV), but it should be incorporated to them, to appropriately treat the current context.
Keywords: Research and Development; Real Options; uncertainty; Black & Scholes (search for similar items in EconPapers)
JEL-codes: D53 D81 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/40970/1/MPRA_paper_40970.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:40970
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Schackstr. 4, D-80539 Munich, Germany. Contact information at EDIRC.
Series data maintained by Ekkehart Schlicht ().