- This topic has 1 reply, 2 voices, and was last updated 11 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Interactive BPP books for September 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black Scholes – Real Option
When we should advice about the option to Expand , Delay , Redeploy , Withdrawal ?? i mean what information that should be consider i.e NPV or other??
I am not quite sure what you mean.
Having the option to ‘do something in the future’ (whatever option it is) will have a value (from the formula) which will make the project more valuable than it would be without the option.
The NPV of the project with the option is the NPV without the option + the value of the option.
