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nekit [7.7K]
3 years ago
10

Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques u

sed to evaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project. Real options the value of capital investment projects.
A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transform an asset at a set price during a specified period of time.

a. True
b. False
Business
1 answer:
svp [43]3 years ago
4 0

Answer:

a. True

Explanation:

The real option should be used in the decision that made for the capital investment in order to rise the worth of the project. So it rise the capital investment value for the project. Also a real option in a capital asset provides the right to the investing firm but not the liability to purchase or sell or transform the asset at a fixed price

Therefore the given statement is true

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Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000
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Answer:

do not Install guard rail because the guard rail cost exceed the expected benefits

Explanation:

given data

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What should the county do

solution

we know here guard rail cost  is  $70,000

but expected benefits = $10,000 × 5

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5 0
3 years ago
converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as:
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Converting quarterly and annual business plans into broad output and labor requirements for the intermediate term is known as aggregate planning.

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In this period of time the company will hire new employees to make enough output to satisfy the demands and thereby maximizing the profit with a minimum cost.

Aggregate planning ensures the efficiency and production of a company. Usually it is done as a prior activity to obtain a continuous production facility.

Learn more about aggregate planning at brainly.com/question/18803972

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5 0
1 year ago
Jeremy is working on a spreadsheet. Which part of the information processing cycle will justify Jeremy's use of the spreadsheet
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Answer:

A

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"An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, w
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Answer:

The expected annual return of Portfolio is 12.00%

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