• IE interfaces
• /
• v.18 no.2
• /
• pp.184-192
• /
• 2005

In recent research there has been intense interest in understanding how real option valuation (ROV) approaches might usefully complement conventional discounted cash flow (DCF) techniques. However, investment decision makers in a real world have been worried about adopting the ROV approaches mainly because of difficulty in technically understanding the theory of the ROV approaches as indicated by many researchers. With this difficulty in mind, we propose the opportunity cost model as another discrete-time model to value a deferral option. The main advantage of observing a real options value in terms of the opportunity cost concept is to provide a technique for practitioners to estimate a wide range of real options values without sticking to a financial option modelling. The fundamental ground for developing the opportunity cost model proposed in this paper lies in the work of dissecting the structure of the real options value into three categories: capital gain, expected opportunity loss, and expected opportunity gain. At the end of the paper, we will present a short illustrative example to demonstrate the applicability of the model.

• Asian Journal of Innovation and Policy
• /
• v.6 no.2
• /
• pp.225-244
• /
• 2017

When evaluating the economic value of technology or business project, we need to consider the period and cost for commercialization. Since the discounted cash flow (DCF) method has limitations in that it can not consider consecutive investment or does not reflect the probabilistic property of commercialization cost, we often take it desirable to apply the concept of real options with key metrics of underlying asset value, commercialization cost, and volatility, while regarding the value of technology and investment as the opportunity value. We at this moment provide more elaborated real options model with the effective region of volatility, which reflects the uncertainty in the option pricing model (OPM).

• Journal of Life Science
• /
• v.19 no.5
• /
• pp.598-606
• /
• 2009

Oxidative stress by free radicals is a major cause of neuronal cell death. Excitotoxicity in hypoxia/ischemia causes an increase in reactive oxygen species (ROS) and a loss of mitochondrial membrane potential (MMP), resulting in dysfunction of the mitochondria and cell death. Pinelliae Rhizoma (PR) is a traditional medicine for incipient stroke. We investigated the effects of PR Water-Extract on the modulation of ROS and MMP in a hypoxic model using cultured rat cortical cells. PR Water-Extract was added to the culture medium at various concentrations (0.25${\sim}$5, 5.0 ${\mu}g/ml$) on day in vitro 12(DIV12), given a hypoxic shock (2% $O_2$/5% $CO_2$, $37^{\circ}C$, 3 hr), and cell viability was assessed on DIV15 by Lactate Dehydrogenase Assay (LDH assays). PR Water-Extract showed a statistically significant effect on neuroprotection (10${\sim}$15% increase in viability; p<0.01) at 1.0 and 2.5 ${\mu}g/ml$ in normoxia and hypoxia. Measurement of ROS production by $H_2DCF-DA$ stainings showed that PR Water-Extract efficiently reduced the number and intensity of ROS-producing neurons, especially at 1 hr post shock and DIV15. When MMP was measured by JC-1 stainings, PR Water-Extract efficiently maintained high-energy charged mitochondria. These results indicate that PR Water-Extract protects neurons in hypoxia by preventing ROS production and preserving the cellular energy level.

• Proceedings of the Korea Technology Innovation Society Conference
• /
• 2001.11a
• /
• pp.307-337
• /
• 2001

In this paper, we propose the valuation frame of the IT(Information Technology) ventures using ROV(Real Options Valuation) model. Generally, ROV can comprises the traditional valuation method such as DCF(Discounted Cash Flow), which can measure only the tangible value of a firm from the expected future earnings, in that ROV can additionally measure the intangible value such as the strategic value of a firm in the uncertain environment. We set up the hypothetic IT venture future investment plan and assume that there are a growth option and a switching option consequently along the investment time horizon, which are caused by each characteristics of ventures and IT technologies, especially modularity. In the case that there are several embedded real options in the firm's investment plan in a row, we should apply the compound option pricing model as a real option valuation model in order to consider the value interaction between real options. In an addition, we present the results of optimal investment timing analysis using real options approach and compare them. with those of the original assumed investment timing.

• Journal of Technology Innovation
• /
• v.12 no.1
• /
• pp.287-304
• /
• 2004

Since there are various types of technologies in the steel manufacturing industry, steel manufacturers need to adopt the most suitable technology Pricing method contingent on the technology type. Steel manufacturing technologies could be categorized as three groups. First, product and process technologies can enhance sales and contribute revenue increase, DCF method could be recommended. Second, maintenance and quality management technologies are mainly embodied in people, human resource profitability method is more suitable. Third, break-through technologies have great uncertainty in terms of commercialization and commercial success, therefore cost saving method is more reasonable. Finally, a sample case is suggested applying above technology pricing model to a steel manufacturer.

• Journal of Korea Technology Innovation Society
• /
• v.8 no.1
• /
• pp.29-50
• /
• 2005

Real options provide a new and productive way to view corporate r&d investment decisions. DCF approach is well established and beloved of financial executives, but is known to systematically underestimate investment value under significant uncertainty. Though real options are not inherent in a r&d investment, they can be used to compute the investment value including managerial flexibility like option value. In this paper, we explain how the interval of option value in black-scholes model can be estimated using simulation. We also present a process framework for interval estimation of volatility and efficient of period of investment value. In such a setting, we can obtain the appropriate interval estimation of the expanded investment value.

• Journal of Digital Contents Society
• /
• v.9 no.4
• /
• pp.679-686
• /
• 2008

Wireless LAN(WLAN) is a rather mature communication technology connecting mobile terminals. IEEE 802.11 is a representative protocol among WLAN technologies. With the rising popularity of delay-sensitive real-time multimedia applications(video, voice and data) in IEEE 802.11 wireless LAN, it is important to study the MAC layer delay performance of WLANs. In this paper, performance for packet delay model that recently have been proposed schemes is analysed in wireless LAN and proved performance results via simulation.

• Asian Journal of Innovation and Policy
• /
• v.5 no.2
• /
• pp.197-207
• /
• 2016

This paper seeks to measure the monetary value of technical development in the deep seabed manganese nodule mining by applying the compound option model (COM). The COM is appropriate for the project in terms of its decision-making structure and embedded uncertainty. The estimation results show that the deep seabed mining project has more economic potential than shown by the previously obtained results from the discounted cash flow (DCF) analysis. In addition, it is reasonable to invest in the project taking the various uncertainty factors into consideration, because the ratio of the value to the cost of the project is far higher than one. This information can be utilized in national ocean policy decision-making.

• KSII Transactions on Internet and Information Systems (TIIS)
• /
• v.6 no.4
• /
• pp.989-1005
• /
• 2012

In this paper, throughput of IEEE 802.11 carrier-sense multiple access (CSMA) with collision-avoidance (CA) protocols in non-saturated traffic conditions is presented taking into account the impact of imperfect channel sensing. The imperfect channel sensing includes both missed-detection and false alarm and their impact on the utilization of IEEE 802.11 analyzed and expressed as a closed form. To include the imperfect channel sensing at the physical layer, we modified the state transition probabilities of well-known two state Markov process model. Simulation results closely match the theoretical expressions confirming the effectiveness of the proposed model. Based on both theoretical and simulated results, the choice of the best probability detection while maintaining probability of false alarm is less than 0.5 is a key factor for maximizing utilization of IEEE 802.11.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.14 no.11
• /
• pp.5465-5475
• /
• 2013

In this study, when to invest in real estate abroad, to present a real option in the way of decision-making. Thus, by using the binomial option model of one of the real thing and DCF, we compared the choice of real estate investment in China and South Korea. Research concerns the real estate market of Shanghai and Seoul, Analyzed the data between 2001-2009. Results were calculated NPV investment period (Net Present Value), Seoul appears in 435.44, Shanghai was 398.26. Investment decision by NPV method will select Seoul. However, as a result of calculating the value using the real option, it was found that for Seoul appear in 615.4, Shanghai has been shown to 626.1, and is suitable for investment in Shanghai. Assuming on the basis of this, that it has invested in practice, and compare the results, Seoul is intended for since 2010, real estate prices fell to 2013 currently, damage has occurred, profit's occurred Shanghai. This ensures that when making decisions in real estate investment and to use the real option than the existing DCF is appropriate.