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Complete the following table by matching option types with correct descriptions. Description Option type Abandonment option Managerial option Growth option Investment timing option Flexibility option

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Complete the following table by matching option types with correct descriptions. Description Option type Abandonment option Managerial option Growth option Investment timing option Flexibility option Fantasy 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 Fantasy's management? O Growth option Abandonment option Investment timing option Flexibility option O Description Option type Abandonment option Managerial option Growth option Investment timing option Flexibility option Allows delaying major expenditures until more information is available Allows adjusting operations based on changing conditions during a project's life Allows potentially profitable investments that would not otherwise be possible Involves physical assets rather than financial ones Allows discontinuing a project if the operating cash flow is lower than expected Complete the following table by matching option types with correct descriptions. Description Option type Abandonment option Managerial option Growth option Investment timing option Flexibility option

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