REAL
OPTIONS ANALYSIS
Copyright © 2007 WACGA - All Rights Reserved
BusinessAllstars.com
Name
Date
Time Period
Cashflow
Upside
Cashflow
Downside
(Period 0 cashflow
must be negative)
Input
Period 0
$
$
WACC
%
Period 1
$
$
Upside probability
%
Period 2
$
$
Months to decision
Period 3
$
$
Output
Period 4
$
$
Expected NPV
$
Period 5
$
$
Upside NPV
$
$
Period 6
$
$
Downside NPV
$
$
Period 7
$
$
Maximized NPV
$
Period 8
$
$
Real Option Value
$
Period 9
$
$
Period 10
$
$