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Consider the following statement about real options: Sometimes real options can give managers the flexibility to decide to invest in a project or wait to make a more calculated decision True or False: The preceding statement is correct. False True Which type of real option allows a project to be expanded if demand turns out to be greater than expected? Timing option Expansion option O Flexibility option Abandonment option Which type of real option allows a project to be expanded if demand turns out to be greater than expected? Timing option O Expansion option O Hexibility option O Abandonment option Consider the following example: Clemens Inc. is considering a $100 million investment in a new line of soft drinks. However, $100 million is a huge Investment for Clemens; it things turn bad, it could wipe out the company. A few senior managers have suggested a smaller investment of $20 milion to see if the market is as strong as they hope it is. If demand is strong and the opportunity is still available, Clemens will increase its Investment at a later date abandon expand This example describes a real option to