Which of the Following Statements Regarding Real Options Is NOT

question 32

Multiple Choice

Which of the following statements regarding real options is NOT correct?

• A)Real options build greater flexibility into a project and thus increase its net present value (NPV).
• B)Real options should only be exercised when they increase the NPV of a project.
• C)Real options give owners the right, but not the obligation, to exercise these opportunities at a later date.
• D)Real options enhance the forecast of a project's expected future cash flows by incorporating, at the start of the project, the effect of decisions that will be made at a later date.

Understand the use and implementation of headers and footers in document formatting.

Master the adjustment of document layout for ease of reading and binding.

Learn how to insert cross-references, equations, and screenshots for enhancing document detail and presentation.

Grasp the process of setting and utilizing document properties for collaboration, including the addition of citations and use of the source manager.

---

Definitions:

Internal Locus

The belief that one controls their own destiny and outcomes are directly tied to one's own behavior and actions.

External Locus

It refers to the belief that one's outcomes in life are determined by forces outside of personal control.

Personality Traits

Enduring characteristics or behaviors that define an individual's responses to various situations.

Dispositions

Inclinations or tendencies in behavior and thought patterns of individuals.