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Managerial Flexibility

4               Managerial Flexibility

4.1            Generic Example with Flexibility           

4.1.1         Option to Defer Investment

4.1.2         Option to Expand Scale

4.1.3         Option to Contract Scale

4.1.4         Option to Temporarily Shut Down

4.1.5         Option to Switch Use

4.1.6         Option to Abandon

4.2            General Flexibility to Switch Operating Modes

4.3            Adaptive Systems Converting Inputs into Marketable Outputs

4.4            Flexibility due to Interest Rate Uncertainty

4.5            Interaction Between Financial and Operating Flexibility

4.6            Multiple Interacting Options

4.7            Competitive Interactions