Real options theory: financial-economic assessment of projects in the ceramics industry

Authors

  • Léony Luis Lopes Negrão Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00
  • Mariana Pereira Carneiro Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00
  • Jorge de Araújo Ichihara Unviersidade Federal do Pará AV. Augusto Correa, 01 – Guamá. Belém/PA, 66075-110 – Sala 238
  • Rubens Cardoso da Silva Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00

DOI:

https://doi.org/10.14488/1676-1901.v15i3.1948

Keywords:

Real Options. Ceramics Industry. Carbon Credit. Economical Evalution. Option to Delay

Abstract

The present study aimed to evaluate economically the implementation of Clean Development Mechanism in the substitution of non-renewable biomass to renewable biomass in the production process of a red ceramics enterprise. The evaluation intended to show the value of management flexibility, according to adaptations made in the methodology proposed by Copeland & Antikarov (2001), adding to the traditional discounted cash flow the evaluation the Real Options. This procedure follows a routine of essential steps for the analysis of variables that comprises the model and enabled the ordination of the results based both on the Real Options and the present values, including management flexibility evaluation.  It could be concluded that Real Options Theory, and the Option to Delay or Postponement contributed with information that might assist and improve projects investment decisions, since several real-world inherent uncertainties are considered.

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Author Biographies

Léony Luis Lopes Negrão, Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00

Departamento de Engenharia de Produção - DENG

Mariana Pereira Carneiro, Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00

Departamento de Engenharia de Produção

Jorge de Araújo Ichihara, Unviersidade Federal do Pará AV. Augusto Correa, 01 – Guamá. Belém/PA, 66075-110 – Sala 238

Instituto de Tecnologia - ITEC

Rubens Cardoso da Silva, Universidade do Estado do Pará Rua Pedro Porpino, 1181 – Salgadinho. Castanhal/PA, CEP: 68745-00

Departamento de Ciências Social Aplicada - DCSA

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Published

2015-09-15

How to Cite

Negrão, L. L. L., Carneiro, M. P., Ichihara, J. de A., & da Silva, R. C. (2015). Real options theory: financial-economic assessment of projects in the ceramics industry. Revista Produção Online, 15(3), 1049–1079. https://doi.org/10.14488/1676-1901.v15i3.1948

Issue

Vol. 15 No. 3 (2015)

Section

Papers

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