Business, 20.09.2019 00:30 kedan12

Gleason research regularly takes real options into account when evaluating its proposed projects. specifically, it considers the option to abandon a project whenever it turns out to be unsuccessful (the abandonment option), and it evaluates whether it is better to invest in a project today or to wait and collect more information (the investment timing option). assume the proposed projects can be abandoned at any time without penalty.
which of the following statements is correct?
(a) the abandonment option tends to reduce a project's npv.
(b) the abandonment option tends to reduce a project's risk.
(c) if there are important first-mover advantages, this tends to increase the value of waiting a year to collect more information before proceeding with a proposed project.
(d) a project can either have an abandonment option or an investment timing option, but never both.
(e) investment timing options always increase the value of a project.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 14:40

Easel manufacturing budgeted fixed overhead costs of $ 1.50 per unit at an anticipated production level of 1 comma 350 units. in july easel incurred actual fixed overhead costs of $ 4 comma 700 and actually produced 1 comma 300 units. what is easel's fixed overhead budget variance for july?

Answers: 2

Answer

Business, 21.06.2019 21:30

Dr. dow jones wants to know whether a problem-based approach to teaching economics will result in higher academic performance than his traditional method. of the six sections of economics 101 at his university, dr. jones randomly assigns three sections to the traditional method and three sections to the problem-based method for unit 1 of the course. then all sections switch the instructional method for unit 2. he plans to compare the performance of the two groups of sections on their unit 1 and unit 2 exams. this study employs a design.

Answers: 3

Answer

Business, 22.06.2019 13:40

Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be:

Answers: 3

Answer

Business, 22.06.2019 19:00

1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals

Answers: 1

Answer

You know the right answer?

Gleason research regularly takes real options into account when evaluating its proposed projects. sp...

Questions

Business, 24.06.2019 22:40

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.1. the optimal interest rate for the f...