Question: Real options ____ affect the size and ____ affect the risk of a project's expected cash flows. ____ A)Do; do not B)Do; do C)Do not;

Real options ____ affect the size and ____ affect the risk of a project's expected cash flows.

____

A)Do; do not

B)Do; do

C)Do not; do

D)Do not; do not

Traditional NPV analysis takes the now-or-never approach.Therefore, it may not be a good choice of forever rejecting an investment today due to the fact that

____

A)A great deal of uncertainty is about the viability of the project

B)The company has foregone the future rights to invest

C)There are always errors in the estimation of NPVs

D)The option value is negative

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