22. Real options (S10.3) True or false? a. Decision trees can help identify and describe real options.

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22. Real options (S10.3) True or false?

a. Decision trees can help identify and describe real options.

b. The option to expand increases PV.

c. High abandonment value decreases PV.

d. If a project has positive NPV, the firm should always invest immediately.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:00 AM

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22. Real options (S10.3) True or false? a. Decision trees can help identify and describe real options.

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Principles Of Corporate Finance

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