Journal of Shanghai Jiaotong University

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Venture Capital Investment Decision Based on Uncertainty of Benefit and Cost

HAO Xu-dong,OUYANG Ling-nan   

  1. (Antai College of Economics & Management, Shanghai Jiaotong University, Shanghai 200052, China)
  • Received:2007-11-07 Revised:1900-01-01 Online:2008-11-28 Published:2008-11-28

Abstract: On the basis of high risk and multistage of venture investment, accounting for the uncertainty both in the cost and benefit, a new real option model was developed. Moreover, the comparison of traditional net present value method and sensitive analysis of main parameters were given. The result shows that this model promotes the science of decisionmaking of venture project investment due to the waiting value introduced by uncertainty of cost and benefit.

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