7. Real options Aa Aa Though complicated, real options help managers make more informed decisions in selecting projects that add value to a firm. Which type of real aption allows a firm to shut down a project if its cash flows are lower than expected? O Investment timing option O Growth option O Abandonment aption Consider the following situation: Arjen used an oil futures contract in order to price an exploration project that has an abandonment option Is it more likely or less likely for Arjen to recommend accepting the project because it has an abandonment aption? O More likely O Less likely This is because if the operating cash flows from the project are the abandonment option and stop the project. than expected, the company can exercise