What is real option analysis? How is it a better method of making investment decisions than using

Question:

What is real option analysis? How is it a better method of making investment decisions than using traditional analysis?
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...