Aa Aa E 1. Valuing real options Real options give the holder the right, but not the obligation, to undertake business decisions-typically those that involve capital investments. Which of the following examples of assets are involved in the valuation of real options? O Property, plant, and equipment O Stocks,and bonds True or False: The presence of managerial, or real, options decreases the value of an investment project. False True Which of the following statements is most accurate about real options? O Real options can give managers the flexibility to decide to either invest in a project or wait to make a m calculated decision at a later date Real options restrict managers to waiting before deciding on making an investment in a project. O Real opt tions do not give managers the flexibility to decide to either invest in a project or wait to make a more calculated decision at a later date. l options always give managers the flexibility to decide to either invest in a project or wait to make a more calculated decision at a later date. O Rea Different methods are used to look for real options and valuing them. The following table lists five possible methods. Select their order of simplicity with 1 being the most simple procedure and 5 being the most difficult procedure. Technique 2 3