Accounting for managerial flexibility in investment project evaluation based on real options theory

N.V. Gryzunova, A.M. Tramova

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Abstract. The study focuses on an organization’s ability to promptly alter its strategy, reallocate resources, and adapt to shifts in markets, technology, and competitor or consumer behavior without a significant drop in efficiency.
Aim. The study aims to provide a methodological rationale and develop recommendations for transforming traditional investment project evaluation approaches by integrating conventional methods with real options theory, as this combination of tools enables managerial flexibility and proactive response to environmental changes under high uncertainty.
Methods. An options-based approach is used to justify investment project execution and estimate the corporate cost of capital. The primary financial methods include real options and a modified BlackScholes option pricing model, both of which are based on the utilization of fintech innovations.
Result. Managerial flexibility, like any service, possesses cost and value. Crucially, any project is subject to redesign Making the project attractive can be achieved by either lowering initial R&D costs, maximizing potential payoffs from a successful launch, or pursuing both strategies simultaneously. Consequently, the real options framework serves as a robust analytical tool to identify the conditions for project viability and to quantify the embedded value of managerial flexibility.
Conclusions. The options approach emerges as a key instrument amid macroeconomic volatility, allowing firms to streamline adaptation to shifts and maximize project and corporate value in the face of hostile external conditions.

Keywords: real options, investment projects, managerial flexibility, uncertainty, option approach

For citation. Gryzunova N.V., Tramova A.M. Accounting for managerial flexibility in investment project evaluation based on real options theory. News of the Kabardino-Balkarian Scientific Center of RAS. 2026. Vol. 28. No. 4. Pp. 117–129. DOI: 10.35330/1991-6639-2026-28-4-117-129

©  Gryzunova N.V., Tramova A.M., 2026

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Information about the authors

Natalia V. Gryzunova, Doctor of Economic Sciences, Professor, Professor of the Department of Sustainable Development Finance, Plekhanov Russian University of Economics;
36, Stremyannyy lane, Moscow, 115054, Russia;
Professor of the Department of Applied Mathematics, Synergy University;
9/14, building 1, Meshchanskaya street, Moscow, 129090, Russia;
Professor of the Department of International Management, Russian Presidential Academy of National Economy and Public Administration;
82, building 1, Vernadsky prospekt, Moscow, 119571, Russia;
Gryzunova.NV@rea.ru, ORCID: https://orcid.org/0000-0001-8582-7389, SPIN-code: 7444-2346
Aziza M. Tramova, Doctor of Economic Sciences, Associate Professor, Professor of the Department of Informatics, Plekhanov Russian University of Economics;
36, Stremyannyy lane, Moscow, 115054, Russia;
Professor of the Department of Applied Mathematics, Synergy University;
9/14, building 1, Meshchanskaya street, Moscow, 129090, Russia;
Tramova.am@rea.ru, ORCID: https://orcid.org/0000-0002-4089-6580, SPIN-code: 8583-3592

Funding

The study was performed without external funding.