Real options analysis is appropriate to use when ; a investment up front can be followed by subsequent investments. a. investments can be staged; larger investments b. can be staged; smaller decisions c. are complex; large decisions d. are not complex; large

Gerda, a real estate agent, is selling a moderately priced house in a subdivision. she knows from her uncle that the factory being built half a mile from the subdivision will be manufacturing dog food, using a process that creates a very strong odor that permeates the surrounding neighborhood. a buyer, who is unaware of the type of factory under construction, makes an offer on one of the houses gerda is selling, and within a short time, the deal goes through. what does this scenario best illustrate?