14. A business is trying to reduce its risk exposure when evaluating a project. Which of the following options would not be relevant to the analysis? A. Contraction option. B. Deferment option. C. Abandonment option. D. Extension option. 15. Under the real options project evaluation approach, the A. value of the asset is the present value of its expected cash flows discounted at the CAPM risk-adjusted rate. B. value of the asset does not require a discount rate. C. value of the asset is the present value of its expected cash flows discounted at the risk- free rate. D. all of the above. 16. The valuation of real assets and options on real assets is based on the A. risk-averse valuation principle. B. risk-neutral valuation principle. C. risk-tolerant valuation principle. D. loss minimization principle.