Estimating the Value of Delaying an Investment Project

This model calculates the value of the optino to delay an invesment project It is useful for investment and project management.

Users must define the following inputs:

1. Present cash flow from investing in the project

2. Annualizd standard deviation

3. Initial investment needed to take project

4.Number of years you have rights to project

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)