Real & flexible options: making follow-on investments (following projects will make a higher return bit requires the initial investment), bailing out or abandoning (selling the project for a high value), switching production (flexible facilities), time investment (delaying or fast tracking based on valuations of product being sold).
New module on risk and the cost of capital opportunity. Volatility: shares > bonds > bills. Risk: the dispersion of possible outcomes around the expected outcome. Measured statistically with the standard deviation.
Composed and transmitted from my iPod Touch
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