Jim Owns a Farm That He Wants to Sell

question 108

Multiple Choice

Jim owns a farm that he wants to sell.He learns that a highway will be built near the farm in the future,giving access to the farmland from a nearby city and thus making the land attractive to housing developers.Expecting the net present value (NPV) of the sale to be greater after the highway is built,he decides not to sell at this time.What real option is Jim taking?

• A)option to delay
• B)option to expand
• C)option to abandon
• D)option to switch
• E)option to sell

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Definitions:

Ruptured Appendix

A medical emergency where the appendix, a small organ attached to the large intestine, becomes inflamed and bursts, leading to the spread of infection within the abdominal cavity.

Abdominal Surgery

A surgical procedure performed on the abdominal area to treat or investigate diseases, disorders, or injuries of the abdominal organs.

Primary Intention Healing

The process by which a wound with clean edges is closed surgically, leading to minimal scar formation.

Dehiscence

The splitting or bursting open of a wound or surgical incision that was previously closed.