Real options can have the effect of
A)increasing a project's NPV.
B)reducing a project's risk.
C)gaining information about future opportunities.
D)All of the above.

Question

Quizplus · Accepted Answer

Real options can increase a project's NPV by allowing flexibility in decision-making regarding future opportunities. This flexibility can also reduce a project's risk by allowing for adjustments to be made in response to changing market conditions or other factors. Additionally, real options can provide valuable information about future opportunities, leading to more informed decision-making. Therefore, all of the above options are potential effects of real options.

Real Options Can Have the Effect of