On optimal investment timing with fuzzy real options ∗

@inproceedings{fuller2001OnOI,
  title={On optimal investment timing with fuzzy real options ∗},
  author={robert. fuller},
  year={2001}
}
To have a real option means to have the possibility for a certain period to either choose for or against something, without binding oneself up front. The real option rule is that one should invest today only if the net present value is high enough to compensate for giving up the value of the option to wait. Because the option to invest loses its value when the investment is irreversibly made, this loss is an opportunity cost of investing. The main question that a management group must answer… CONTINUE READING