Ask Question
BusinessBusiness
1 September, 20:44

True or False: A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transfer an asset at a set price during a specified period of time.

+5
Answers (2)
  1. 1 September, 20:46
    0
    Answer: True

    Explanation: Real options references projects that involves tangible assets, assets of a physical nature and are choices that are available to the management of a firm regarding business investment opportunities. Thru are discretionary investment opportunities 'embedded' in a capital project and confers on its holder the right, but not the obligation, to buy, sell, or otherwise transform, transfer an asset at a set price during a specified time period.
  2. 1 September, 21:03
    0
    True

    Explanation:

    Real options are choices a company's management makes to expand, change, or curtail projects based on changing economic, technological, or market conditions ... Using real options value analysis (ROV), managers can estimate the opportunity cost of continuing or abandoning a project and make decisions accordingly.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “True or False: A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Five months ago Wilson opened up a health club. Which of the following is an implicit cost related to the health club? Group of answer choices Wilson paid $120 for an outside laundry service to clean the towels used at the club.
Answers (1)
B Co. reported a deferred tax liability of $24 million for the year ended December 31, 2017, related to a temporary difference of $60 million. The tax rate was 40%.
Answers (1)
Blue Spruce University sells 6,800 season basketball tickets at $45 each for its 10-game home schedule. Prepare a tabular summary to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game
Answers (1)
Suppose the number of buyers in a market decreases and a technological advancement occurs also. what would we expect to happen in the market? a. equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b.
Answers (1)
Who was the president during the great depression?
Answers (1)
New Questions in Business
The chapter says that for consumers as a group, Quiznos sandwiches are normal goods and Subway sandwiches are inferior goods.
Answers (1)
Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of: a.
Answers (1)
John has applied overhead of $80,000 and actual overhead of $70,600 for the month of November. He applies overhead based on direct labor hours, and that amounts to 10,000 hours for the month of November.
Answers (1)
Under market organization, individuals can communicate their preferences to other decision makers directly, through communication, but not indirectly, through their choice of whom to transact with. A) True B) False
Answers (1)
If you die without a valid will: the federal court decides how the property should be distributed. the IRS confiscates your property. your relatives or friends will get the property. the state's law of descent and distribution becomes your will.
Answers (1)
Home » Business » True or False: A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transfer an asset at a set price during a specified period of time.
Sign Up Forgot Password?