This calculator is designed for finance professionals to evaluate the potential value of real options in corporate finance projects. It helps you assess various scenarios to make informed strategic decisions.
A real option is the right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, or contracting a capital investment project.
Real options valuation recognizes the value of managerial flexibility and strategic decision-making in response to unexpected market changes, unlike traditional valuation methods.