A hybrid automobile has two motors, gasoline and electric. It switches between motors for power, sometimes using
Question:
a. How could two engines possibly make for a more efficient auto-mobile? What does this have to do with real options?
b. What must be true of the various capital and operating costs for the option to switch/mix two motors (which also includes cost) to add value to the car?
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Related Book For
Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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