[Verse 1] When you're planning out a project, there's more than meets the eye Not just cash flows in and outflows, there's flexibility to try You can wait to see what happens, expand when times are good Abandon ship when things go badly, options give you should [Chorus] Real options, real value, delay expand abandon Three choices in your pocket when the future's hard to fathom Traditional methods miss the point, they calculate too narrow Real options capture flexibility like a value-finding arrow [Verse 2] Net present value tells a story but it's missing half the plot It assumes you're locked in rigid plans, changing course you cannot But smart managers keep their choices, they adapt to what they see That flexibility has value, it's optionality [Chorus] Real options, real value, delay expand abandon Three choices in your pocket when the future's hard to fathom Traditional methods miss the point, they calculate too narrow Real options capture flexibility like a value-finding arrow [Bridge] Delay when uncertainty is high, wait for better information Expand when the market's looking bright, seize the right occasion Abandon when the losses mount, cut your losses clean These options add up to more value than traditional models glean [Verse 3] Oil companies drill exploratory wells, they're buying the right to choose Tech startups fund their pilot programs, it's options they can use Manufacturing builds in stages, each phase unlocks the next These flexible project structures give managers more context [Chorus] Real options, real value, delay expand abandon Three choices in your pocket when the future's hard to fathom Traditional methods miss the point, they calculate too narrow Real options capture flexibility like a value-finding arrow [Outro] So when you're evaluating projects, don't just run the NPV Ask what options come embedded, what's the flexibility The future's full of surprises, and options help you cope Real options thinking captures value, expands your project scope
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