The first step in a real options analysis is to value the underlying asset using discounted cash flow (DCF) method.

Name: The first step in a real options analysis is to value the underlying asset using discounted cash flow (DCF) method.
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Valuing the underlying asset using discounted cash flow (DCF) method is the first step in traditional investment analysis. In real options analysis, the first step is to identify and analyze the various real options embedded in the project.

The First Step in a Real Options Analysis Is to Value