What are real options, and why are they important to capital budgeting?

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Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Question Posted: Feb 03, 2012 12:39 AM

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What are real options, and why are they important to capital budgeting?

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Real options are opportunities to respond to changing circumstances in the context of investment decisions An investment timing option gives management the opportunity to change when or how a project ...View the full answer

Intermediate Financial Management

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