Examlex
In most European colonies in the Americas, which of the following was true?
Real Options
Occur when managers can influence the size and risk of a project’s cash flows by taking different actions during the project’s life. They are referred to as real options because they deal with real as opposed to financial assets. They are also called managerial options because they give opportunities to managers to respond to changing market conditions. Sometimes they are called strategic options because they often deal with strategic issues. Finally, they are also called embedded options because they are a part of another project.
NPV Method
Net Present Value method, a process for evaluating and comparing investments by calculating the difference between the present value of cash inflows and outflows over a period of time.
Capital Budget
A spending plan for a company's long-term investments in assets and projects, intended to maintain or grow the business.
DCF Analysis
Discounted Cash Flow Analysis, a valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.
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