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Real options

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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December 8, 2016 at 12:33 pm #362217
zulfi245
Member
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When we calculate value of real options , is this value added to the previous NPV without option?
(in all types of real options eg: delay,expand….)
December 8, 2016 at 3:34 pm #362278
John Moffat
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- Topics: 57
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If it is an option to delay, then no – it is the full value.
If it is an option to expand, then yes – it is like an additional ‘project’.
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