Prof. Jamie Sabal shared the story of Panchito in his blog. In brief, Panchito Eché is a citizen of Cuba. He managed to save a small amount of money and is considering starting a small restaurant in Havana. The return from the business is promising about 15%. However, Panchito will face another problem. He should keep government officers happy. In other words, he should share his happiness (profits) with the officers. Thus, the return will be 8 % annually. Panchito’s cousin, who lives in Miami, told him that the restaurant business usually yields 12%. Since Panchito´s restaurant will yield 8% the NPV would be negative, and the idea of opening a restaurant would have to be rejected. Thus, Panchito has no choice but to „save“ his money under the mattress at 0% interest.
Prof. Sabal concludes that the „NPV rule applies virtually everywhere“.

Any political regime could not kill entrepreneurship and ingenuity. Panchito deserves the respect of all entrepreneurs in the World. Keeping the money under the mattress at a 0.00% yield has another risk. Panchito is likely to be a victim of a robbery. Thus, he will lose his savings. Running his small business, he diminishes the risk of theft.
Moreover, the happiness of the government officers could be classified as a transaction fee or a premium of a real call option. In other words, Panchito starting the small restaurant in Havana is buying a real call option. The Government (officers) sells, and he accepts the right but not the obligation to start a small restaurant. Cuba is developing. Panchito believes that one day he will run his restaurant as a free entrepreneur like his cousin from Miami, and he takes the challenge, the risk, to open the restaurant.
Real options could be found everywhere. Panchito has the eyes to see the option for expansion and willingness to exercise it.