... portfolio in accordance with the no-arbitrage argument That 28 REAL OPTIONS IN PRACTICE 21 15 22 10 16 17 24 12 23 11 18 25 13 19 26 14 20 27 t0 t1 t2 t3 t4 t5 t6 FIGURE 1. 7 The binomial tree price in ... encouraging investments 12 REAL OPTIONS IN PRACTICE early, when NPV suggests refraining from investment Real option analysis can in fact tell you what the value is of waiting to invest The use of real ... Harvard Business Review, Jan.–Feb 63 :12 8, 19 85 17 R Hayes and D Garvin, “Managing As If Tomorrow Mattered,” Harvard Business Review, May–June, 71, 19 82 30 REAL OPTIONS IN PRACTICE 18 W.C Kester,...