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Projects are also often embedded with different options that can help maling decisions under uncertainty. There are techniques used to cvaluate these embedded options which

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Projects are also often embedded with different options that can help maling decisions under uncertainty. There are techniques used to cvaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project, True or False: A real option embedded in a capital project gives the investing firm the right and the obligation to buy, sell, or transfer an asset at a set price during a specified period of time. True False III. This option allows the outputs of the production process to be altered if market conditions change during a project's life. IV. This option allows a firm to postpone a project until it can gather more information or market conditions change. Which of the listed statements best describes an abandonment option? Statement I Statement If Statement IIII Stabement IV Mone of the statements lished above desoribes an abandonencrit option. Real option analyis adds value to a project when it is used for which of the following? chack alf that apply, Expanding the way that enanagers view ritk and uncertainty, seeing them as plicnomena to be appreciatsd and exploted rather than feared and avoided Making manegenal decieian maling less defiberate and analyticel Wod ying tha way that deoition malkers perave fiexobility in cepital budgeting adtivities l. Ideritilying resl coptions that can be sold in the financial maizets

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