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Complete the following table by matching option types with correct descriptions. Option type Description Abandonment option Flexibility option Allows adjusting operations based on changing conditions

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Complete the following table by matching option types with correct descriptions. Option type Description Abandonment option Flexibility option Allows adjusting operations based on changing conditions during a project's life Allows delaying major expenditures until more information is available Growth option Allows entrance into a new geographical market Investment timing option Allows managers to influence the returns on a project Allows reducing capacity or temporarily suspending operations Real option Dada Inc. is a firm that obtained a patent for the new iToys it has developed but is uncertain about market demand for its new product. Which of the following real options would be the best choice for Dada's management? Flexibility option Growth option Investment timing option Abandonment option

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