| Summary: | 碩士 === 國立交通大學 === 經營管理研究所 === 101 === Financial project always involve multiple cash flow project, valuation method is adding them directly now, but every cash flow has its own characteristic so will produce different probability distribution. Adding them directly will ignore their correlation effect, it may over- or under-estimate the value of managerial flexibility. A study with two cash flow project is used, valuating it by DCF method, and using Monte Carlo simulation to analyze, then using B-S model to calculate option value, it shows that portfolio cash flow is different to combine cash flow. The result will provide manager a consult in processing multiple cash flow project.
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