IT Project Evaluation and Investment Decision

作     者：黄东兵 张世英 

作者机构：School of Management Tianjin University Tianjin 300072 China 

出 版 物：《Transactions of Tianjin University》 (天津大学学报（英文版）)

年 卷 期：2004年第10卷第3期

页      面：236-240页

核心收录：

学科分类：0202[经济学-应用经济学] 02[经济学] 020205[经济学-产业经济学] 

主　　题：information technology (IT) project total ownership cost (TOC) net present value (NPV) real option investment decision 

摘      要：There are many kinds of real options,which are valuable,in each phase of the lifetime of an information technology(IT)***,in the current IT investment decision theory,real options that embedded in IT projects are not considered. In this paper, the process of IT project decision and implementation is fully analyzed, the real options that may be embedded in an IT project are identified, and a real option analysis (ROA) method is proposed for evaluation of an IT project under uncertain business environment. ROA employs Black-Scholes expansion model and cancels the assumption that the cost of project is certain. The numerical example manifests that the ROA can better evaluate IT project and select the IT investment alternative. Finally, a road map is provided to help selecting the suitable evaluation method to make IT investment decision.