Though complicated, real options help managers make more informed decisions in selecting projects that add value to a firm. Which type of real option allows a firm to postpone a project until it can gather more information? O Investment timing option Growth option Flexibility option Which type of real option allows a firm to postpone a project until it can gather more information? Abandonment option O Investment timing option Flexibility option O Growth option Consider the following situation Arjen used an oil futures contract in order to price an exploration project that has an abandonment option Is it more likely or less likely for Arjen to recommend accepting the project because it has an abandonment option? Less likely O More likely than expected, the company can exercise This is because if the operating cash flows from the project are the abandonment option and stop the project