Prospects of application of the method of real options when evaluating investment projects .

Abstract

This article discusses the prospects for applying the method of real options as a more effective method of evaluating investment projects . In particular, the article discusses the main shortcomings of traditional methods of evaluation of investment projects , based on discounted cash flows , provides a definition of real options , a classification real options . Also, the example reveals the prospects of applying the method of real options for evaluation of investment projects .