1 What is a real option?

Group of answer choices

An option that is currently available and you can exercise.

An option on decisions related to business opportunities.

All of these are true.

An option that has been exercised

2 How is the required rate of return determined for project evaluation?

Group of answer choices

Determine the weighted average cost of capital and use this for all projects

All of these are fundamentally sound finance decision rules.

The higher the risk, the higher the required rate of return

Determine the weighted average cost of capital and add a premium in order to create some slack, then use this for all projects