A real options analysis values future flexibility in a real asset context. The flexibility relates to having a future choice between alternatives, or having the future ability to influence the directions of a project or venture, for example to contract, abandon or expand a project in order to improve envisaged outcomes. Real options have wide relevance throughout industry, including applications in resources, research and development, patents, contracts and adaptation to shifting climates and demographics. Examples in this book emphasize the diverse range of applications.
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