Paul Irvine’s Reviews > Investment under Uncertainty > Status Update

tldr (so far); investments that are 1) non-reversible, 2) have some leeway in timing, and 3) have any uncertainty whatsoever in any way, shape, or form have an inherent opportunity cost of investing that complicates the “invest if NPV > 0” story in neoclassical models. Analogous to financial call options, where firms’ flexibility for investments is inherently valuable. Also reviews stochastic calculus.