The purpose of this research is to develop a cost estimation model of a project with its real options. This issue is particularly attributed to the selection of an adequate evaluation model. However, despite the high computational accuracy of a particular model, it can scarcely ever meet the challenge of estimating the cost of compound real options. They may be of two types: 1) options, at the heart of which there are a few basic assets, i.e. projects or project development scenarios; 2) options, at the heart of which there are other options acting as basic assets (options on options). This research presents a model for evaluating compound real options of the first type, i.e. those whose basic assets include various projects and their development scenarios. The technical structure of such compound real options consist in supplementing project evaluation that has been already conducted using the net present value with a number of real options such as an option to scale down a business, an option to abandon a business, an option to develop a business, an option to expand an experience, an option to switch over a business, and an option to delay a project start.