Question: 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

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 type of the real option avalable for the 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 investment timing option An output flexibility option A growth option An input flexibility option Trua Faise 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 investrent timing option An output fiexibility option A growth option An input flexability option Real option analysis adds value to a project when it is used for which of the following? check all that apply? Making managerial decision making less deliberate and analytica! Making changes to the capital budget before it is started and financod Identifving real options that can be sold in the financial markets
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