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 available for the project. Real options increase the value of capital investment projects. Which type of real option allows a firm to postpone a project until it can gather more information or market conditions change? A growth option An investment timing option A shutdown option An expansion 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 Identifying real options that can be sold in the financial markets Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project Making changes to the capital budget before it is started and financed