Real options theory and strategic investment decisions: a case study in the Brazilian waterway sector
The present work is aimed at applying Real Options Theory for the analysis of an investment project related to the removal of the Pedral do Lourenço rock formation, on the Tocantins River waterway in Brazil. A discussion was made as to the merits of this approach for the evaluation of investment projects by decision makers and by incorporating managerial flexibility, especially with regards to the use of public funds, as was the case analyzed by this article.