formulate a response to the feedback received below

I enjoyed reading your post. Thank you for discussing the techniques to manage limitations of capital budgeting. I agree that the use of real options uses a more comprehensive analysis. The real options analysis attempts to determine a value for a capital project's flexibility. It does this as an extension of NPV, using probability estimates and assuming changes in the discounted cash flows for project adjustments, such as asset choice, investment timing, growth options and abandonment. For example, if we estimate the NPV as $1 million for a project today, but if we find that expanding the project in year 2 may add value of $300,000. Then the NPV with Real Options is $1.3 million ($1million+$300k). This extra $300k is the option value of having flexibility.