Has a GWP Over 20 Times Higher Than CO₂

question 19

Multiple Choice

has a GWP over 20 times higher than CO₂.However,CH₄ emitted today lasts for only about a decade in the atmosphere,while the GWP of CO₂ can last for thousands of years.What is a possible reason that CH₄ can have such a high GWP as compared to CO₂?

• A)The 100-year time frame is too short of a time frame to compare CH₄ and CO₂.
• B)CH₄ absorbs more energy than CO₂.
• C)CH₄ is less efficient at trapping heat on Earth.
• D)CH₄ is not a proven greenhouse gas.

---

Definitions:

Real Options

Real options refer to choices available in investment projects that allow managers to make decisions that can alter the project's course based on future uncertainties.

Real Options

The value of additional decision-making opportunities available to a business when investing in a project.

Real Option

A financial concept that represents the value of additional future investment opportunities available to a firm when it undertakes a capital investment project.

Underlying Source of Risk

Fundamental factors that can cause uncertainty in investment returns, including but not limited to market volatility, economic changes, and geopolitical events.