How can a value be assigned to a real option when we never know if it will be of any use when it has to be paid for? What kind of a number is the value assigned to a real option and how is it derived in capital budgeting? Is an assigned value always a true estimate or is it a limit, i.e. a minimum or a maximum? Why?

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The Answer of How can a value be assigned to a real option when we never know if it will be of any use when it has to be paid for? What kind of a number is the value assigned to a real option and how is it derived in capital budgeting? Is an assigned value always a true estimate or is it a limit, i.e. a minimum or a maximum? Why?

How Can a Value Be Assigned to a Real Option