Question

Real options analysis is appropriate to use when __________________; a ________________ investment up front can be followed by subsequent investments.

Answer 1

Answer:

1.  investments can be staged;

2.  smaller

Explanation:

Real Option is a term that describes a form of investment tool, which is utilized to assess and analyze the delicate risks involved when it comes to starting a new business venture.

Hence, Real options analysis is appropriate to use when INVESTMENT CAN BE STAGED; a SMALLER investment upfront can be followed by subsequent investments.