44. Which of the following is not a real option? abandonment option b. a. expans

Question

44. Which of the following is not a real option? abandonment option b. a. expansion option investment timing option c. d. flexibility option all of the above are real options e. Which of the following is likely to be true of a valuable abandonment option? a. It makes the NPV of all of the possible outcomes at least equal to zero. b. It reduces the projeet's risk. c. It improves the project's expected NPV. d. Both a. and c. are correct. e. both b. and c. are correct. 45. A real option that allows a company to respond more easily to changes in business conditions is known as a(n): 46. a. expansion option 7

Explanation / Answer

44, all of the above option are real option

45. Both b and c

46 Expansion option

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