Author Question: The use of real options in capital budgeting A) may raise the NPV of a capital project. B) makes ... (Read 112 times)

asmith134 · **on:** Jul 1, 2018

The use of real options in capital budgeting

A) may raise the NPV of a capital project.
B) makes the analysis of the project considerably easier.
C) allows management to make decisions more quickly.
D) eliminates the need for calculating the project's risk adjusted discount rate.

Question 2

The cost of lobbying for an import quota in a perfectly competitive market

A) increases the welfare loss of the quota.
B) decreases the deadweight loss of the quota.
C) shifts the supply curve of the good to the left.
D) increases the consumer surplus.