Real options implicit in a food distribution company

Authors

  • Mauricio Gutiérrez Urzúa Universidad del Bío Bío
  • Jorge González Sepúlveda Universidad de Concepción

DOI:

https://doi.org/10.15381/idata.v17i2.12046

Keywords:

deferring, flexibility, options, project, real, risk

Abstract

The present study focuses on the valuation of a project through real options. It suggests that the flexibility that this type o projects have provides a value added to it, considering that the fact of being able to decide the most appropriate time to expand given the different potential scenarios in the long term. In particular, it is desired to valuate the option of deferring the expansion strategy through the construction of branches in various cities of the country It was possible to infer that the real option of postponing an expansion project generates an additional value, mainly due to the benefit of opening an branch before schedule, considering the risk effect and variability.

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Author Biographies

  • Mauricio Gutiérrez Urzúa, Universidad del Bío Bío
    Doctor en Finanzas, Master en finanzas Académico del Departamento de Economía y Finanzas de la Universidad del Bío Bío Chile.
  • Jorge González Sepúlveda, Universidad de Concepción
    Máster en Gestión Industrial Universidad de Concepción Chile.

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Published

2014-12-20

Issue

Section

Producción y Gestión

How to Cite

Real options implicit in a food distribution company. (2014). Industrial Data, 17(2), 39-47. https://doi.org/10.15381/idata.v17i2.12046