A great deal of theoretical work exists on how to model and value investment opportunities having real options. To date, this work has provided new insights into capital budgeting decision-making and a new decision-making framework. However, the currently proposed real option models are not...

Interviews in South Korea, Taiwan, Singapore, and India indicate net present value (NPV) is not widely employed in making capital investment decisions in these newly industrialized and developing countries. It is not from lack of knowledge about net present value: rather, it is due to (1)...