Which of the following is an example of a "real option" in an investment decision?
A)Valuation of vacant land
B)Valuation of projects with phases of development
C)Valuation of a building that can be renovated
D)All of the above

Question

Quizplus · Accepted Answer

Real options in investment decisions refer to the flexibility investors have to make choices in the future that affect the value of their investments. Valuing vacant land, projects with phases of development, and buildings that can be renovated all involve considering the future choices and potential changes in strategy, making them examples of real options.

Which of the Following Is an Example of a "Real