What kinds of real options should be considered in the following situations?
a. Wingnuts R Us is considering two sites for a new factory. One is just large enough for the planned facility, while the other is three times larger.
b. Carousel Cruises is purchasing three new cruise ships to be built sequentially. The first ship will commence construction today and will take one year to build. The second will then be started. Carousel can cancel the order for a given cruise ship at any time before construction begins.