Under uncertainty and irreversibility, real option-based models are widely accepted for assessing investment projects. So far the existing post-tax analyses do not provide a general analytical description of investor reactions towards profit tax rate changes. This paper sets out to fill part of...

Under uncertainty and irreversibly, real option-based models are widely accepted for assessing investment projects. So far the existing post-tax analyzes do not provide a general analytical description of investor reactions towards profit tax rate changes. This paper sets out to fill part of the...