Benefits Distribution Model of High-Risk Projects Based on Deferral Options for Supply Chain Finance

Abstract

DCF method has its unique problem when dealing in the risk evaluation circulated for cash-flow issues, and it also neglects the accurate assessment and value in changing different investment. In order to solve the high-risk evaluation for deferred allocation with supply chain finance, a binomial trees model of deferral option for pricing is uses to the valuation problem and solve to an uncertain environment. It is analyses the three key problems for VC investment on supply chain finance, when set up a binomial trees model of deferral option for pricing. The Results is that was tested in a real options and approach to the decision-making when investment to a maximize benefits for a high-risk evaluation, and this method is a practical analysis which provided a new solution for support to decision-makers.