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As a freshly minted MBA, the executive team of your company has invited you to help them better understand the concept of managerial/real options. Which
As a freshly minted MBA, the executive team of your company has invited you to help them better understand the concept of managerial/real options. Which one of the following statements made by different executives is correct? Ignoring the option to expand causes the net present value of a project to be a) underestimated. b) Strategic options are relatively easy to evaluate using discounted cash flow analysis. c) Having the ability to temporarily cease operations iS referred to as the option to abandon d) The option to abandon a project has no real financial value. e) Ignoring the option to abandon causes the net present value of a project be overestimated
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