Real options approach to Investment Decision Making

1. Revision of NPV

        Additional (Strongly Recommended) Reading: Summary of How to use WACC

        Additional Reading (Optional): Behavioral Influences on the Calculation of Expectations in Project Appraisal

2. Financial options

3. Real options

Arvind Ashta is Professor at Burgundy School of Business (Groupe ESC Dijon-Bourgogne) and visiting faculty at University of Paris 6 (Pierre et Marie Curie).