Real Option Techniques in Project Management

The paper deals with elements concerning the application of the new “real options” approach system in project management of small and medium sized companies. The real option approach has the advantage of a great flexibility when a high degree of uncertainty is present. Also, it suggests to estimate the maximal profit obtained by investing a certain amount of capital using: updated monetary flow methodology, Monte Carlo simulation method and other stochastic optimization techniques like those using minimum and imposed risk problems. Generally, this new approach was used in the project management of large companies.