{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,11,1]],"date-time":"2025-11-01T17:25:06Z","timestamp":1762017906535,"version":"3.40.3"},"reference-count":31,"publisher":"Scientific and Business World","license":[{"start":{"date-parts":[[2016,3,1]],"date-time":"2016-03-01T00:00:00Z","timestamp":1456790400000},"content-version":"unspecified","delay-in-days":0,"URL":"http:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Advances in Decision Sciences"],"published-print":{"date-parts":[[2016,3,1]]},"abstract":"<jats:p>Usually, traditional methods for investment project appraisal such as the net present value (hereinafter NPV) do not incorporate in their values the operational flexibility offered by including a real option included in the project. In this paper, real options, and more specifically the option to abandon, are analysed as a complement to cash flow sequence which quantifies the project. In this way, by considering the existing analogy with financial options, a mathematical expression is derived by using the binomial options pricing model. This methodology provides the value of the option to abandon the project within one, two, and in general <mml:math xmlns:mml=\"http:\/\/www.w3.org\/1998\/Math\/MathML\" id=\"M1\"><mml:mrow><mml:mi>n<\/mml:mi><\/mml:mrow><\/mml:math> periods. Therefore, this paper aims to be a useful tool in determining the value of the option to abandon according to its residual value, thus making easier the control of the uncertainty element within the project.<\/jats:p>","DOI":"10.1155\/2016\/7605909","type":"journal-article","created":{"date-parts":[[2016,3,1]],"date-time":"2016-03-01T21:01:45Z","timestamp":1456866105000},"page":"1-12","source":"Crossref","is-referenced-by-count":5,"title":["Assessing the Option to Abandon an Investment Project by the Binomial Options Pricing Model"],"prefix":"10.47654","volume":"2016","author":[{"given":"Salvador","family":"Cruz Rambaud","sequence":"first","affiliation":[{"name":"Departamento de Econom\u00eda y Empresa, Universidad de Almer\u00eda, La Ca\u00f1ada de San Urbano, s\/n, 04120 Almer\u00eda, Spain"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Ana Mar\u00eda","family":"S\u00e1nchez P\u00e9rez","sequence":"additional","affiliation":[{"name":"Departamento de Econom\u00eda y Empresa, Universidad de Almer\u00eda, La Ca\u00f1ada de San Urbano, s\/n, 04120 Almer\u00eda, Spain"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"52777","reference":[{"key":"25","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405X(77)90015-0"},{"key":"5","doi-asserted-by":"publisher","DOI":"10.1016\/S0123-5923(09)70073-7"},{"key":"11","first-page":"105","volume":"73","year":"1995","journal-title":"Harvard Business Review"},{"issue":"62","key":"16","first-page":"153","year":"1984","journal-title":"Harvard Business Review"},{"key":"19","first-page":"51","volume":"4","year":"1998","journal-title":"Harvard Business Review"},{"issue":"1","key":"13","first-page":"41","volume":"7","year":"2008","journal-title":"Horizontes Empresariales"},{"year":"2003","key":"17"},{"key":"18","doi-asserted-by":"publisher","DOI":"10.1155\/2013\/240394"},{"key":"27","doi-asserted-by":"publisher","DOI":"10.1016\/j.renene.2014.01.038"},{"key":"2","doi-asserted-by":"publisher","DOI":"10.1016\/j.emj.2013.02.005"},{"key":"12","doi-asserted-by":"publisher","DOI":"10.1111\/j.1468-2370.2011.00304.x"},{"key":"15","doi-asserted-by":"publisher","DOI":"10.1016\/j.irfa.2015.05.026"},{"key":"28","doi-asserted-by":"publisher","DOI":"10.1108\/jpif-10-2012-0046"},{"key":"3","doi-asserted-by":"publisher","DOI":"10.1086\/260062"},{"issue":"4","key":"24","first-page":"141","volume":"1","year":"1973","journal-title":"The Bell Journal of Economics and Management Science"},{"key":"8","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405x(79)90015-1"},{"key":"26","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1994.tb00079.x"},{"key":"30","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.41.5.795"},{"key":"4","doi-asserted-by":"publisher","DOI":"10.1287\/deca.1050.0040"},{"key":"31","doi-asserted-by":"publisher","DOI":"10.1287\/deca.1050.0041"},{"key":"33","doi-asserted-by":"publisher","DOI":"10.4028\/www.scientific.net\/amr.926-930.4073"},{"key":"32","doi-asserted-by":"publisher","DOI":"10.1155\/2014\/291737"},{"year":"2002","key":"10"},{"volume-title":"Opciones reales: valoraci\u00f3n por el m\u00e9todo binomial","year":"2011","key":"21"},{"key":"9","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2243"},{"volume-title":"Opciones reales en la valoraci\u00f3n de proyectos de inversi\u00f3n","year":"2007","key":"20"},{"key":"6","doi-asserted-by":"publisher","DOI":"10.1016\/j.scitotenv.2014.07.019"},{"volume-title":"Opci\u00f3n real de abandonar un proyecto de inversi\u00f3n","year":"2014","key":"22"},{"year":"2004","key":"29"},{"key":"14","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.3.1.102"},{"year":"2000","key":"7"}],"container-title":["Advances in Decision Sciences"],"original-title":[],"language":"en","link":[{"URL":"http:\/\/downloads.hindawi.com\/archive\/2016\/7605909.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"text-mining"},{"URL":"http:\/\/downloads.hindawi.com\/archive\/2016\/7605909.xml","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"http:\/\/downloads.hindawi.com\/archive\/2016\/7605909.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2020,9,28]],"date-time":"2020-09-28T16:10:05Z","timestamp":1601309405000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.hindawi.com\/archive\/2016\/7605909\/"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2016,3,1]]},"references-count":31,"alternative-id":["7605909","7605909"],"URL":"https:\/\/doi.org\/10.1155\/2016\/7605909","relation":{},"ISSN":["2090-3359","2090-3367"],"issn-type":[{"type":"print","value":"2090-3359"},{"type":"electronic","value":"2090-3367"}],"subject":[],"published":{"date-parts":[[2016,3,1]]}}}