Resumen en español

Determining the financial viability to build a broadband network in a medium size Colombian city such as Armenia requires a financial model that can estimate the free cash flow for this project. However, calculating the net present value with such a model is not enough to determine the project viability. Therefore, the methodology of real options appears as an alternative that offers more flexibility in the valuation and takes into consideration the uncertainty that comes with these types of decisions where the strategies initially planned can be abandoned, reoriented or completely changed.