TITLE

An approach to the R&D value based upon real option method

AUTHOR(S)
Keng Hsin Lo; Yu Wen Lan
PUB. DATE
April 2010
SOURCE
Quality & Quantity;Apr2010, Vol. 44 Issue 3, p509
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper aims to build up feasible models based upon the real option method (ROM) to assess R&D. In this paper we built eight models integrating with three conditions to assimilate the real situation an R&D project may encounter. We utilized both numerical and statistical illustration based upon an empirical case to exhibit the correctness of our models. We diverged our discussion into either expense or capital viewpoint to react with current accounting debate. The results shed us the light: our models in both expense and capital viewpoint can correctly asses R&D; the selected conditions play essential roles to influence the correctness of our models.
ACCESSION #
48624200

 

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