The Entry and Exit Model of Taiwan Enterprise’s Leasing Market in China under the Different Risk Function

• Main Authors: Ching-Tzu, Lu, 盧靜姿
• Other Authors: Tyrone T. Lin
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/15102816854963921667

碩士 === 銘傳大學 === 管理科學研究所 === 90 === This paper is to utilize the real options approach for evaluating Taiwan’s commercial banks making single entry and extended entry and exit models into the Taiwan enterprise’s leasing market in China. According to the leasing market endures different degrees of risk, we try to apply different utility functions in each models. Under uncertainty of revenue in the leasing market, the best solution, the threshold value for entry and exit strategy, the potential project value and sensitive analysis will be calculated. We also compare some different results by traditional net present value method and real options approach, to provide decision maker for another way of thinking. This thesis utilizes the real options approach for evaluating commercial banks to derive two results as follows：1. The entry threshold value of ROA is higher than NPV’s. The exit threshold value of ROA is lower than NPV’s. The reason is that the potential value of waiting investment doesn’t involve by NPV method. It also means that the decision of ROA is more conservative than NPV under uncertainty. 2. Investors tend to conservative the higher thresholds they want no matter utilize the single entry or extended entry and exit models of ROA or NPV method.