please help with explanation

Rates: Discount rate Risk-free rate Cash from Operations minus: Capital Expenditure = Net Cash Flow (NCF) Terminal Value PV of NCF Cash from Operations minus: Capital Expenditures = Net Cash Flow (NCF) Terminal Value PV of NCF PV of Cap. Ex. (Yrs. 1-2) Zion Aviation 6.0% 2.1% Scenario: No Real Options Start 1 2 3 1.1 3.0 2.1 1.0 1.0 3.0 4.0 (3.0) (2.9) 1.1 2.0 Scenario: Real Options Start 1 2 3 1.1 2.1 3.0 1.0 1.0 4 4.0 1.3 0.7 4 4.0 1.3 5 6.0 2.0 4.0 6 8.0 1.8 6.2 5 6 6.0 8.0 2.0 1.8 1 11.0 1.0 10.0 11.0 1 11.0 1.0 11.0 Option Pricing: PV of Cap. Ex. (Yrs. 1-2) Maturity PV of NCF Risk free rate Volatility BS calculations: #DIV/0! dl N(dl) d2 #DIV/0! #DIV/0! #DIV/0! N(42) Price of call #DIV/0! Difference: - Value of Option over P #DIV/0! #DIV/0! - % of PV 3.0 25%