Answer:
A. Real options must have positive value becasue they are only exercised when doing so would increase the value of the investment.
B. If exercisung the real option would reduce value, managers ca allow the option to go unexercised.
D, Having the real option but not the obligation to act is valuabale.
Explanation:
Because real option are options or choices made available to managers of a firm concerning investment their choices are meant to bring about a positive growth and return on the investments.
So if any of the choices presented to these managers are going to reduce the values or have other negative impacts on the investment and its value, then the option which is the real option or ideal option canbe forgone.
Cheers.
<span>_____ are people willing to take the risk of starting, owning and operating a business. answer
a. entrepreneurs </span>
Answer:
a. Salary for the second year:
Salary is to increase by 4% in second year.
= 53,000 * (1 + 4%)
= $55,120
b. Third year salary:
Second year salary will increase by 5.5%
= 55,120 * (1 + 5.5%)
= $58,151.60
c. Fourth year salary:
Third year salary to increase by 11.1%
= 58,151.60 * (1 + 11.1%)
= $64,606.43
Answer:
Explanation:
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The three primary aspects
of a free market could include private ownership of everything for sale,
free-floating forces of supply and demand, and a man secretly in charge of
everything. <span>A free market economy is a type of economic system whereby supply and demand,
with a minimum of involvement on the part of a government drive the forward
movement of the economy.</span>
