bc0e6d7f_ue_Investing__Timeless_Reading__Description
[Title] Real Option Applications in Corporate Finance and Valuation [Download] Download pdf file [Description] 
Are there options embedded in investment decisions? Undoubtedly. There are also options in financing and valuation. The real question is whether these options have value, and how much they are worth. In this paper, I examine the whole range of real option applications, from the options to expand, delay and abandon in investment options to the option to liquidate in the equity of the firm. I also look at potential applications of real options in R&D and valuing undeveloped natural resources, and suggest that real options need to pass a three-part test to have value.
Value Investing: Timeless Reading
Description