Real Options

The Network-switching plug-in allows users to evaluate projects in which a decision maker can choose between different operating modes basically defined by a payout rate and by an change of state due to the the changeof the endogenous variable. The decision maker optimizes the value of theproject by choosing rationally the best within the available operating modes. The plug-ins calculates the optimal operating-mode transition policies, the expected value of the project and the probability of being in a given operatingmode as a function of time.