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Which of the following statements is correct in relation to real option analysis? Real option analysis is important when there is a high likelihood of

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Which of the following statements is correct in relation to real option analysis? Real option analysis is important when there is a high likelihood of new information arriving during the life of the project, even if managers are not able to respond to the new information. O The option to abandon a project should never be exercised early if no cash flow is expected during the option life. O The fact that the projects are evaluated using a hurdle rate higher than WACC is evidence consistent with managers using real option analysis. None of the other statements is correct in relation to real option analysis. More than one of the other statements is correct in relation to real option analysis. Which of the following statements is correct in relation to real option analysis? Real option analysis is important when there is a high likelihood of new information arriving during the life of the project, even if managers are not able to respond to the new information. O The option to abandon a project should never be exercised early if no cash flow is expected during the option life. O The fact that the projects are evaluated using a hurdle rate higher than WACC is evidence consistent with managers using real option analysis. None of the other statements is correct in relation to real option analysis. More than one of the other statements is correct in relation to real option analysis

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