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Aa Aa 6. Real options Complete the following table by matching option types with correct descriptions. option type Growth option Abandonment option Description Allows delaying

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Aa Aa 6. Real options Complete the following table by matching option types with correct descriptions. option type Growth option Abandonment option Description Allows delaying major expenditures until more information is available Allows discontinuing a project if the operating cash flow is lower than expected Allows potentially profitable investments that would not otherwise be possible Allows adjusting operations based on changing conditions during a project's life Involves physical assets rather than financial ones timing optionAllows delayin Flexibility option Managerial option Butoh Inc. is a firm that produces iPlanes, but due to changing economic conditions, the firm would now like to reduce its capacity temporarily. Which of the following real options would be the best choice for Butoh's management? Investment timing option Growth option Abandonment option Flexibility option

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