6. Real options AaAa Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques used to evaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project Real options the value of capital investment projects. Which type of real option allows a firm to shut down a project if its cash flows are lower than expected? An input flexibility option An expansion option An abandonment option A growth option Real option analysis adds value to a project when it is used for which of the following? Check all that apply. Making changes to the capital budget before it is started and financed Modifying the way that decision makers perceive flexibility in capital budgeting activities Identifying real options that can be sold in the financial markets Increasing the riskiness of the capital project and decreasing the project's cash flows