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▷ ▶ Real Option SelectSmart.com free Business flowcharts and decision trees.
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A SelectSmart.com Flowchart by pradeepm. See pradeepm's 4me blog page.
Viewed 110 times.
Created December 2013.
This SelectSmart.com Business flowchart, a free online decision tool is a creation of pradeepm and for amusement purposes only. The implicit and explicit opinions expressed here are the author's. SelectSmart.com does not necessarily agree.
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Steps in real option
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Cash flow:
Investment, -I
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First movie a success?
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YES
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Produce second movie
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Cash Flow:
Revenue, 0.7*R
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NO
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Produce both movies at same time?
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Cash flow:
Revenue, R
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Cash Flow:
Investment, -1.2*I
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YES
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Cash flow:
Investment, < 2I
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Cash Flow:
Revenue, < 2R
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Real Option
