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Jim Owns a Farm That He Wants to Sell

question 7

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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?


Definitions:

Patent Application

A formal request for the rights to an invention, submitted to a patent office.

Copyright Exists

Legal condition asserting that a created work is protected under copyright law, giving its creator exclusive rights.

Public Hands

Owned, managed, or operated by governmental entities rather than private individuals or organizations.

Copyright

The right of ownership of an original literary or artistic work and the control over the right to copy it.

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