Real Option Applied in Economic Evaluation of Port & Waterway Projects

Traditional evaluation method of national economy is to make a decision at one time by the net present value, without considering the influence induced by the change of project environments. However, real option reflects the genuine value of the project because it takes corresponding measures made by the investors into account while the environment of the project varies. The evaluation method of real option is applied in the evaluation and decision-making of national economy of port waterway projects and achieved an ideal evaluating result in comparison with the traditional evaluation method of national economy.