Applying the Concept of Real Options to the Commercial Real Estate Decision Making of Tenure Selection-The Case of New Palace International Company in Harbin
| Autor: | Hsiu-Min Chang, 張綉敏 |
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| Rok vydání: | 2012 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 100 This study applies the concept of real option to the company decision making of tenure selection. As the house price in the future remains uncertainty, tenure selection is like a timing option to buy a house. This study does not only indicate that this option is an American put option, but also derive the value of the put option through binomial option pricing model. On the one hand, if the company selects to pay the rent for one period instead of buying a house, the expenditure may be reimbursed due to the decrease of house price. On the other, the expenditure may rise due to the increase of house price. This study offers a useful model for household to determine whether it is a right decision to buy or rent a house. The inclusion of premium prices, This paper analyzes that this particular case, when house prices premium to 0, the traditional NPV is less than waiting for the NPV, companies should choose the lease. But when prices premium over 5 million, the traditional NPV is greater than waiting for the NPV, the Enterprise executable purchase decision-making. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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