The article discusses how financial analysis can help manage research, development, and acquisition investments. By analyzing the costs and benefits of different RDA activities, companies can make strategic decisions to maximize returns while minimizing risks. The study shows that the optimal balance between research and development can vary based on factors like the cost of capital. By considering real options in RDA decisions, companies can better assess the value of different investment opportunities. Overall, corporate financial analysis provides a useful framework for making smart RDA decisions.