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Which of the following statements is INCORRECT about real options? A real-options valuation will sometimes reveal that it's better to invest in a single large
Which of the following statements is INCORRECT about real options? A real-options valuation will sometimes reveal that it's better to invest in a single large plant than a series of smaller plants. Real-options analysis sometimes tells firms to make negative-NPV investments to secure future growth opportunities. O Option value consists of intrinsic value and time premium value. The time premium value is higher if the option maturity is longer. O Options are more attractive when the uncertainty is low and the immediate project cash flow is low
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