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Author Question: Which of the following statements regarding real options is correct? (Read 73 times)

billyboy7272

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on: Aug 7, 2023
Which of the following statements regarding real options is correct?

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Real options involve both “real” and “financial” assets.


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An investment timing option is the ability to abandon a project if the cash flows turn out to be lower than expected. It reduces the risk of a project and increases its value.


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The abandonment option involves the possibility of delaying major expenditures until more information on likely outcomes is known.


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A flexibility option is the option to modify operations depending on how conditions develop during a project’s life, especially the type of output produced or the inputs used.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by billyboy7272 on Aug 7, 2023

ealonif

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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billyboy7272

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

covalentbond

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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