To see if valuing an investment as a real option creates any extra value for a firm,it is necessary to establish a ________.
A)timeline
B)benchmark
C)ceiling
D)floor

Question

Quizplus · Accepted Answer

Establishing a benchmark is necessary to see if valuing an investment as a real option creates any extra value for a firm. This allows for a comparison between the real option valuation and other valuation methods or the investment's intrinsic value without considering the real option aspect.

To See If Valuing an Investment as a Real Option