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9. Real options Aa Aa E Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques used
9. Real options Aa Aa E Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques used to evaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project. Real options the value of capital investment projects. increase decrease Which type of real option allows a firm to postpone a project until it can gather more information or market conditions change? An investment timing option O A growth option An expansion option An output flexibility option Real option analysis adds value to a project when it is used for which of the following? Check all that apply. Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project Modifying the way that decision makers perceive flexibility in capital budgeting activities Increasing the riskiness of the capital project and decreasing the project's cash flows O Making managerial decision making less deliberate and analytical
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