Jim Owns a Farm That He Wants to Sell

question 7

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

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Definitions:

New Politics Movement

A political movement that emerged in the 1960s and 1970s, focusing on civil rights, environmentalism, and opposition to the Vietnam War, promoting a shift in political values.

Civil Rights

Rights protecting individuals' freedom from unjust discrimination or infringement; typically include rights to free speech, fair trial, and equal treatment under the law.

Antiwar Movements

Social movements, often in response to specific military conflicts, that seek to end or prevent war through protests and advocacy.

Activist Organizations

Activist organizations are groups that advocate for social, political, environmental, or other changes, often engaging in various forms of public demonstrations and lobbying.