Question: Good managers not only identify and evaluate real options in projects-they also structure projects so as to create real options. Suppose a company is considering

Good managers not only identify and evaluate real options in projects-they also structure projects so as to create real options. Suppose a company is considering a project to build an electric generating plant. Name some real options that might be built into the project, explain how they could be evaluated, and discuss their effects on the project’s NPV.

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