Consider the option value model on the optimal investment of the recycle economy projects

摘要

In this paper, We apply option game theory methods to compensate for the inherent limitations of traditional NPV, study Timing Decision of recycle economy investment in monopoly situation, in best time to invest the recycle project, not only brought a lot of cash flow, better profitability, and implemented the project cycle of production, reduce production costs. Finally ,analyze the parameters of affecting investment , which can reduce the impact on investment; And analysis the difference in critical belief value between the project investment of recycle economic and non-recycle economy.