The real option research of uncertainty project investment decision-making

In the decision process of the project investment under uncertainty, there appeared that the traditional valuation method was imperfect and even error because it didn't consider the managerial flexibility. Aiming at this circumstance, this paper introduced real option theory and detailedly expatiated how to set up real option structure about project investment evaluation, at last with an example, it explained how to use quantitative analysis to practically operate a deferring option's value.