K.U.Leuven - Departement toegepaste economische wetenschappen
DTEW Research Report 0320 pages:1-13
When scheduling an uncertain project, project management may wait for additional (future) information to serve as the basis for rescheduling the project. This flexibility enhances the project's value by improving its upside potential while limiting downside losses relative to the initial expectations. Using traditional techniques such as net present value or decision tree analysis may lead to false results. Instead, a real options analysis should be used. We discuss the potentials of a real options approach to project scheduling with an example and highlight future research directions.