Research Article
Incorporating Overconfidence into Real Option Decision-Making Model of Metal Mineral Resources Mining Project
Table 1
Main technical and economic parameters of the copper mining project.
| | Input parameters | Units | Value |
| | Initial investment () | RMB billion yuan | 9.3 | | Cost of production () | RMB yuan/ton | 8967.54 | | Yearly production of copper ore () | Ton | 1010000 | | Risk-free interest rate () | % | 3.48 | | Twin security’s volatility () | % | 22.46 | | Noise factor’s volatility () | % | 31.4 | | Overconfidence coefficient () | Dimensionless | 0.5 | | Yearly convenience yield () | % | 1.48 | | Life span of the project () | Year | 20 | | Initial price of copper | RMB yuan/ton | 28950 |
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