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.
Answer:
a.
Explanation:
The aggregate quantity of goods and services demanded changes as the price level rises because real wealth falls causing interest rates to rise, and this in term causes the dollar to appreciate since the interest rates are for products and services within the country and not foreign goods or services. Which as the dollar appreciates it means that foreign goods and services will become cheaper or that their relative price will fall.
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Answer:
$15,000
Explanation:
Joe has sold the house he has been living in for 10 years to the Smiths family
He sold the house at $300,000
Joe receives $50,000 more than the original price bargained 10 years ago
He pays the real estate agent a commission of 5%
= 5/100
= 0.05
Therefore the increase in gross domestic product can be calculated as follows
= $300,000×0.05
= $15,000
Hence, the transaction will increase the gross domestic product by $15,000
a balance achieved between two desirable but incompatible features; a compromise.
"a trade-off between objectivity and relevance"