Option Pricing Model to Value a Product Patent or Option

Description
The user has to input the following variables
1. Present value of net cashflows from taking project now.
2. Variance in the present value, as a function of environmental and technical changes.
3. Present value of the cost of developing the product/project for commerical use.
4. Riskless interest rate that corresponds to length of the product patent.
5. Length of the product patent / rights to the project.
6. Expected annual after-tax cashflow from project after it is developed.

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)