Research on Investment Decision of Project with Switching Option

There are many uncertainties in investment of projects,traditional evaluation methods ignore the value of management flexibility in the application and often underestimate the true value of the project.Compared with the traditional evaluation methods,real option method can evaluate the project value more accurately and improve the investment decision-making.Through case studies,the paper evaluates the project using switching option,which obtains the management flexibility of the investment process,and provides the basis for decision-making.