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Abstract
A common method used for evaluation of investment projects is the Cost Benefit
Analysis (CBA). Desiring to have insight into the core of investment, the optional
modules with real options are becoming more in use, which represent the stochastic
approach. The basic purpose of this research was therefore to display applications of
methods real options in agriculture. Results of the traditional CBA with the parameter
NPVt showed the production of processed potatoes in cubes is the most suitable. For
the assessment of real options investment projects of processing potatoes the Black
Scholes model have been used further used. Option value (OV) to the Black-Scholes
(BS) model show positive values for all three types of processing (french fries, slices
and cubes). However, real options have important value, because the traditional
methods of investment analysis are upgraded to the methods of real options with
stochastic terms.