This summary compares major financial evaluation methods for adaptive (agile) and linear (rigid) business projects. Result: Modern Real Options are most suitable for adaptive projects and are backward compatible with linear projects. NPV or IRR are well suitable for linear projects.

	Modern Real Options	Traditional Real Options	Monte Carlo Analysis	NPV / IRR
Usage	Business Case, Portfolio Prioritization, Annual Budgeting	Business Case, Portfolio Prioritization, Annual Budgeting	Sensitivity analysis	Business Case, Portfolio Prioritization, Annual Budgeting
LINEAR Waterfall / V-Cycle	✅	-	✅	✅
ADAPTIVE Waterfall / V-Cycle	✅	✅	-	-
SAFe®, Scrum at Scale, LeSS	✅	✅	-	-
Unlimited Complexity	✅	-	-	-
Project-specific Uncertainty appreciation	✅	✅	✅	-
Appreciation of Adaptability	✅	✅	-	-
Easy Expression of Business Assumptions	✅	-	✅	✅
Financial Valuation of LINEAR projects	✅	-	-	✅
Financial Valuation of ADAPTIVE projects	✅	✅	-	-
Easy, fast, and inexpensive Usage	✅	-	✅	✅
Low requirement of Financial Expertise	✅	-	✅	✅
Tooling	ROC software	EXCEL plug-ins	EXCEL plug-ins.	EXCEL

LPM in SAFe® becomes straightforward, rational and fast

Modern Real Options allow the financial evaluation of Epics, BAVS, and entire portfolios in SAFe®. Indeed, each PI can be represented as an option on the next PI or on a business outcome.

This evaluation capability is a breakthrough for LPM and portfolio prioritization: The CoD and thus WSJF metrics can be calculated financially, in a rational and fast way. No more need for proxy variables. LPM becomes straightforward.