Real options analysis is most appropriate when
A. the investment required can be justified by Discounted Cash Flow (DCF) techniques.
B. the total investment required is small, but the environment is uncertain.
C. a small investment up front can be followed by a series of subsequent investments.
D. there is no prospect of obtaining additional knowledge before making subsequent investments.
Answer: C
You might also like to view...
Which of the following characteristics describes a professional, effective PowerPoint slide?
a. all information incorporated into a few slides with a lot of text b. many different colors on each slide c. timed d. information spread onto several slides
MyLappie manufactures its laptops according to customers specifications. Customers can place
an order and specify the shape, size, and configuration of the laptop along with the designs of its keyboard. Which of the following product differentiation approaches does MyLappie use? A) quality B) durability C) reliability D) customization
Which of the following statements best illustrates a conclusion?
A) the opening argument delivered by the defendant's lawyer to the jury B) the most important evidence offered by an eyewitness C) the action of a lawyer in objecting to unconvincing testimony D) the judge's written decision in favor of the plaintiff or defendant at the end of a trial
A JIT system works best in a ______.
A. pull system B. push system C. constant demand system D. constant supply system