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 the of the real able for project. True or False: A real option embedded in a capital project gives the investing firm the right and the obligation to buy, sell, or transfer an asset at a set price during a specified period of time. True False Which type of real option allows the inputs in the production process to be altered if market conditions change during a project's life? An output flexibility option An input flexibility option A shutdown option An abandonment option Real option analysis adds value to a project when it is used for which of the following? Check all that apply. Expanding the way that managers view risk and uncertainty, seeing them as phenomena to be appreciated and exploited rather than feared and avoided Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project Making managerial decision making less deliberate and analytical Making changes to the capital budget before it is started and financed