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Certain real options allow companies to change cepacity output in response to changing market conditions. True or Falses The preceding atetement is correct. Tiune Talbe

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Certain real options allow companies to change cepacity output in response to changing market conditions. True or Falses The preceding atetement is correct. Tiune Talbe Which type of real optien allows a preject to be exparded if demand turns out to be greater than expocted? Inweatmont timing ostion Erowth option fiestility option Absidocenert option Which type of real option allows a project to be expanded if demand turns out to be greater than expected? Invetanent timing option Growth eption Flexiliticy option Abandonment option Corelder the following example: Comess Inc is contidering a $100 million invectment in a new line of soft drinks. However, $100 million is a huge investment for: demensy if things hum bed, it could wipe out the company. A few senior manogers have suggested a smallor invetment of 220 million to sce if the marlet is as strong as they hope it is. If demand is atrong and the opportunity is still avallable, Clemens will increase its

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