英语翻译We illustrate the approach with forest industry,which is

英语翻译
We illustrate the approach with forest industry,which is a typical example of a capital-intensive cyclically price sensitive commodity industry.The main stream outputs of the industry are relatively homogenous and alternative production technologies can be defined from an engineering perspective.In our model,an entering forest industry firm selects its optimal product-technology portfolio from a set of
investment possibilities by maximizing its real option value.
We are using the resulting model to assess potential new investments.Simultaneously,the uncertain cash flow of already existing production assets may be considered.Thereby,the model can also be used for merger analysis of existing companies with different production structures.Extension of the current model,for instance,to consider timing of investments,is straightforward:the decision variables
currently indicating quantities invested at the initial stage are revised to account for alternative stages of such investments.