InterCon provides services to health insurers of foreign tourists who travel to the United States and Canada. Management wants to implement a new information system that will deal with several operational problems, but it is having difficulty securing the capital resources to fund the system's development. After an initial failure, the chief information officer tries a second time with a modified approach referred to as real options valuation. Real options valuation methods are well suited when valuing assets that present discretion or flexibility in how asset implementation is structured in terms of amount or timing. The efficacy of real options valuation to information systems development projects is explored as the company's management applies the valuation method to the proposed information system. (Contains 15 endnotes.)