The method of real options is an addition to making the obtained.

Introduction to Real Options | SpringerLink

the method of real options is an addition to making the obtained

It deals with the importance of recognizing flexibility in capital investments, and how traditional ways of valuing investments have largely neglected the benefits of flexibility in the presence of uncertainty and irreversibility. Flexibility in investment decision making can limit the downside potential of an investment while exploiting its upside potential.

In its asymmetric structure, it is shown that flexibility possesses option-like features that allow for interpreting managerial flexibility as options on real assets which can be valued using option pricing methods well known in financial markets.

the method of real options is an addition to making the obtained

The resulting additional value introduced by flexibility can be operationalized by the notion of expanded net present value, which covers the sources of value coming from the static project without flexibility and the value of all relevant managerial real options. This process is experimental and the keywords may be updated as the learning algorithm improves. This is a preview of subscription content, log in to check access.

the method of real options is an addition to making the obtained

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the method of real options is an addition to making the obtained

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