System and method for valuing investment opportunities using real options, creating heuristics to approximately represent value, and maximizing a portfolio of investment opportunities within specified objectives and constraints

摘要

A system and method for valuing investment opportunities using real options, creating heuristics to approximately represent value, and maximizing a portfolio of investment opportunities within specified objectives and constraints. The system and method provides a problem solving environment for graphically representing complex valuation and decision problems, valuing them using real option analysis or discounted cash flow analysis, and creating heuristics between value and fundamental parameters. The system allows a user to graphically create a decision problem that allows combining options of both American and European types, fixed cash flows, and probabilities of technical success in whatever sequence is needed. The system also enables a user to describe parameters of the decision problem in names or in numbers in preformatted sheets or make connections to existing databases that hold the necessary information. Built in intelligence provides a user with on-demand tools to calculate valuation parameters.