Which one of the following will NOT increase the value of a real option?
A. Lengthening the time during which a real option must be exercised.
B. An increase in the volatility of the underlying source of risk.
C. An increase in the risk-free rate.
D. An increase in the cost of obtaining the real option.
E. A decrease in the probability that a competitor will enter the market of the project in question.
Answer: D
You might also like to view...
List the four special journals that are often used in a manual accounting information system. State what types of transactions are recorded in each of these special journals.
What will be an ideal response?
Monthly or weekly service schedule is the ______ set of decisions in the hierarchy of operations decision for ______ organizations.
a. last, manufacturing b. first, manufacturing c. last, service d. first, service
The standard error of -
is the
A. pooled estimatorof -
.
B. variance of the sampling distribution of -
.
C. standard deviation of the sampling distribution of -
.
D. margin of error of -
.?
Because an outsourced provider is specialized, a main disadvantage is their inability to learn unique innovations from one company and transfer them to another company.
Answer the following statement true (T) or false (F)