depends on the same parameters, which are inputs of NPV method. Additional important parameter is volatility as a measure of … flexibility and surrounding volatility. The best benefits these methods bring when NPV is near to zero. The main areas of their …

everywhere, every company has the flexibility, but its value depends on volatility. It order to utilize it some selection is … decisions at high certainty or at risk with zero volatility, where the option value is close to zero. Real options give some …