QUESTION 43 Red River Station is considering investing in Texas. Which of the following factors would make the company less likely to proceed with the investment? Ob. O a. The company would have the option to withdraw from the investment after 2 years if it turns out to be unprofitable. The investment would increase the odds of the company being able to subsequently make a successful entry into Oklahoma O c The investment would preclude the company from being able to make a profitable investment in Oklahoma O d. Competitors are considering similar investments in Texas, and the firm can discourage them from trying by entering now. O e. The new plant could be easily retrofitted to manufacture many of the firm's other products. QUESTION 44 Which one of the following will NOT increase the value of a real option? a. Lengthening the time during which a real option must be exercised. An increase in the volatility of the underlying source of risk. Ob. O d. An increase in the risk-free rate. d. An increase in the cost of obtaining the real option e. A decrease in the probability that a competitor will enter the market of the project in