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9. Real options Projects are also often embedded with diflerent options that can help maling decisions under uncertainty. There are techniques used to evaluate these:

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9. Real options Projects are also often embedded with diflerent options that can help maling 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? True or Falsas A real option embedded in a capital project gives the investing firm the right and the obligation to buy, sell, or transfer an asset at a set price during a specificd period of time. True Falsa II. This option allows a project to be expanded if demand turns out to be greater than expected. IV. This option allows a firm to postpone a project untilit on gother more information or market conditions change. Which of the listed statements best describes an abandonment option? Statement I Statement II Statement III statement IV Mone of the albtements listed above describes an abandonment option. Real option analyis adds value to a project when it is used for which of the following? Check an that appl.: Expanding the way that manegers view risk and uncertainty, seeing them as phenomena to be appreciated and exploited rother than feared and avoided feared and avoided D. Making managerial docision maling less delbernte and anelytical

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