Real Options Valuation
Strategic flexibility framework for valuing the right (but not the obligation) to expand, defer, or abandon projects.
v1.0.00 variables4 edgesOpenCM 1.0
Common Uses
- Valuing a deferred R&D investment
- Valuing the option to abandon a project
- Phased investment decisions in capital-intensive industries
- Stress-testing a DCF with embedded flexibility
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