If a Project Has Optionality

question 8

Multiple Choice

If a project has optionality:

• A) the shorter the available life of the project the less valuable the project is.
• B) the longer the available life of the project the less valuable the project is.
• C) the shorter the available life of the project the more valuable the project is.
• D) available project life does not change optionality.

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Definitions:

Imposed Price

A price that is set by an external authority rather than by market forces of supply and demand.

Consumer-friendly

Describes goods, services, or policies that are designed with the welfare or satisfaction of consumers in mind.

Real Estate Market

The market segment encompassing the buying, selling, and leasing of property including land and buildings.

Supply Shifted

A change in the quantity of a good or service that suppliers are willing and able to sell at all possible prices, typically due to factors like changes in technology or costs.