An Improved Model for Valuing R&d Projects
نویسندگان
چکیده
We propose theoretical improvement to the Silva & Santiago (2009) valuation model for innovative projects and discuss a practical application. We discuss some points of the model and include a minimum sales function, which decreases in time. In order to test the model, we performed the valuation of an existing project. This project has multiple sources of uncertainty and managerial flexibility at every stage of its development. We conclude from de results that the improved model is the most appropriate for evaluating R&D projects in the context of development product with guaranteed market share.
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