Question: In a decision tree, caution should be used in the analysis because: A) later stage decisions are probably riskier than earlier stages. B) negative NPVs

In a decision tree, caution should be used in the analysis because:

A) later stage decisions are probably riskier than earlier stages.

B) negative NPVs should never occur.

C) all real options must be included in the basic tree.

D) failure and its probability should be ignored because they are irrelevant.

E) early stage decisions are probably riskier than later stages.

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