In my thesis I aimed to show main differences between the traditional and real valuation methods of various investments. I aimed to show differences through cases and examples. Main problem was within the value of managarial flexibility which can considerably change the value of investment. Through various examples of real options (option to defer investment, option to expand, option to contract, option to abandon) I displayed how to correctly and effectively valuate flexibility. Morever, I showed how such flexibility affects the overall valuation. Those methods proved to be sufficiently appropriate for the valuation of investments as they encompass wide spectrum of variables which can influence the value of investment. Thus, in my opinion those methods proved to be valuable as well as useful, although there are further complexities in an investment, some even beyond our understanding.
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