The value of a real option is at least the increase in the project's estimated NPV arising from the option's inclusion.

Name: The value of a real option is at least the increase in the project's estimated NPV arising from the option's inclusion.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The value of a real option allows for flexibility in decision-making and can increase the expected NPV of a project. Therefore, its inclusion will result in at least an increase in the estimated NPV, making the statement true.

The Value of a Real Option Is at Least the Increase