Lesson 1 of 0
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1.9 The real options in Capital Budgeting-Characteristics of the real Options; Types of Options in Capital investment Appraisal-Strategic investment option (Expansionary Option), Timing option (Option to delay a project), abandonment option (Option to Withdraw a project), the replacement option and the Option to re- deploy a project, challenges in use of options in investment analysis
Real options in capital budgeting refer to the application of options theory to evaluate investment opportunities. Real options recognize that investment decisions often involve flexibility and the ability to adapt to changing market conditions.
