General principles of application of the real options valuation in investment analysis

The article describes the general principles and proves the expediency of application of the real options valuation as an important tool for effective management decision making in investment analysis of projects. There are specified shortcomings of the discount method, which are particularly evident in conditions of uncertainty. The authors have studied the possibilities of using the Black-Scholes model for calculating the value of real options. There are also studied the application conditions of the real options valuation, their types, and there are analyzed the advantages and disadvantages of it; the scope of its practical application is substantiated too