ifferent methods are used to look for real options and valuing them. The following table...
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Accounting
ifferent methods are used to look for real options and valuing them. The following table lists five possible methods their order of simplicity with 1 being the most simple procedure and 5 being the most difficult procedure. Select Technique 2 3 5 Use a standard model for a financial option. Develop a unique, project-specific model by using financial engineering techniques. Use decision-tree analysis. Use discounted cash flow valuation and ignore any real options by assuming their values are zero. Use discounted cash flow valuation and include a qualitative recognition of any real option's value. O O O O

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