This paper provides a real option methodology in order to value a pioneer’s R&D investment opportunity allowing for more potential competitors to enter in the market. To incorporate this competitive dimension, we assume that the pioneer may lose the “competitive dividends”   if the real...

The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However, most R&D investment projects are open to competing...

Exchange options give the holder the right to exchange the asset V for the asset D. They present an important role for the evaluation of investment projects which have uncertainty both in the gross value (underlying asset) and in the investment costs (exercise price). In this paper we propose to...

The traditional NPV (Net Present Value) method doesn't value opportunely the e-commerce investment projects which are characte\-rized by initial limited cash flows and a high uncertainty. The real options theory instead individuates the strategical opportunities as basic part of the project...