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2 August, 14:39

Which type of real option allows the output and/or inputs in the production process to be altered, depending on how market conditions change during a project's life? a. Flexibility option b. Timing option c. Abandonment option

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Answers (2)
  1. 2 August, 14:43
    0
    B

    Explanation:

    Timing option makes it possible to alter inputs or outputs in production process.
  2. 2 August, 15:05
    0
    correction option is A i. e. Flexibility option

    Explanation:

    correction option is A i. e. Flexibility option

    flexibility option make easier for corporation unit to decide on production or raw material on the basis of market condition.

    Abandonment option - As the name indicate this option initiate when corporation suffered huge lost or when there is a conditioned of minimum cash flow due to any reason.
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