Which of the Following Is NOT True Concerning Real-Option Valuation

question 17

Multiple Choice

Which of the following is NOT true concerning real-option valuation (ROV) ?

• A)ROV is theoretically superior to decision tree analysis.
• B)In practice,ROV cannot always replace decision tree analysis.
• C)In practice,ROV can replace traditional discounted cash flow analysis.
• D)In practice,ROV is well suited to decisions in commodity-based businesses.

---

Definitions:

Instructor

A person who teaches a specific subject or skill, often within an educational institution or a specialized training context.

Creative

Characterized by originality and expressiveness; having the ability or power to create through imagination.

Constructive Criticism

Feedback provided in a way that acknowledges both strengths and areas for improvement, intended to help the recipient grow.

Nonverbal Cues

Forms of communication without the use of spoken language, including gestures, facial expressions, body language, and tone of voice, that can convey messages or emotions.