خلاصة:
The purpose of this paper is io review the real options literature, which has provided a promising area of development in the capital budgeting process of the firm, and to emphasize that employing the new theory, as part of the information system, depends heavily on the implementation of computer information systems, as Decisions Support Systems (DSSs). The paper concentrates on two important real options: to wait and to abandon. lt is shown that in absence of the real option values in the capital decision making models, the outcome of such models would be misleading and would lead to wrong decisions. The paper furnishes some avenues for further research in capital budge‹if1g employing real option literature.
ملخص الجهاز:
R. of IRAN The purpose of this paper is io review the real options literature, which has provided a promising area of development in the capital budgeting process of the firm, and to emphasize that employing the new theory, as part of the information system, depends heavily on the implementation of computer information systems, as Decisions Support Systems (DSSs).
Capital Budgeting, Real Options, Management Information System, Computer Information Systems, Decisions Support Systems INTRODUCTION The use of information technology to increase the competitiveness of a firm has been a major area of interest in information systems literature.
Some rcsearcbcrs criticize the u se of traditional EU F”I’ anal suggest that the practice tit capital budgeting should be ex tenclcd tti incorpoi ate thc real option values that cx ist ut the tiinc tif in vcstmcnt decisitin-making [ 1.
In this section some important real options are discussed and relevant references are given: Option to Wait (Option to Defer): Management has an option to choose the timing of investment.
Implicitly, July/December, 2005 Iranian Journal of Information Science & Technology, Volume 3, Number 2 thc NPV rolc assumes that the decision setting is to invest now or never.
In the real option approach to investment, the overall uncertainty, and not merely the systematic risk that is the case in the Capital Asset Pricing Model (CAPM), is also important.
The real option values are potentially important faCtors in investment evaluation and should be incorporated in investment decisions.