Real Options Exist When Managers Have the Opportunity, After a Project

question 7

True/False

Real options exist when managers have the opportunity, after a project has been implemented, to make operating changes in response to changed conditions that modify the project's cash flows.

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Definitions:

Non-Experimental

Research methods that do not involve manipulating variables to determine effects but instead observe naturally occurring relationships.

Experimental

Pertaining to a method of research that involves the manipulation of variables to establish cause and effect relationships.

Correlational

Relating to a statistical relationship between two or more variables, where changes in one variable are associated with changes in another, without implying causation.

Confounding Results

Outcomes in research that cannot be accurately attributed to the variables under examination because of the influence of extraneous variables.