Abstract
In the field of project management or technology management, nothing is described on the economic evaluation of project. As a rare case, even if real options are explained in addition to traditional economic evaluation index such as net present value, it is not a detailed explanation, such as easily and immediately applied. The medicine development project needs appropriate economic evaluation index, since the project has to have a long period of time and to have low rates of success under restrictive legal controls. There is no detailed presentation on the application of real options, although they are generally said to be appropriate for the need. Then, binominal real options are applied to evaluate a typical medicine development project.
