Consider the following statement about real options: decision tree analysis is more commonly used in valuing securities than real [Solved]

Take into account the next assertion about actual choices: choice tree evaluation is extra generally utilized in valuing securities than actual property. true or false: the previous assertion is right. o false o true which kind of actual possibility permits the output and/or inputs within the manufacturing course of to be altered, relying on how market circumstances change throughout a challenges life o flexibility possibility o abandonment possibility o timing possibility o growth possibility take into account the next instance: clemens inc. is contemplating a$100 million funding in a brand new line of sentimental drinks. nonetheless, $100 million is a big funding for clemens; if issues flip dangerous, it may wipe out the corporate. a couple of senior managers have recommended a smaller funding of $20 million to see if the market is as sturdy as they hope its. if demand is robust and the apportunity remains to be accessible, clemens will enhance its funding ata later date. this instance describes an actual choice to

Flexibility possibility Clarification: False: It may be used equally for each.
Corporations typically have an choice to differ inputs to the manufacturing or change the output from manufacturing. Such choices are often known as versatile manufacturing choices. actual choice to increase.

correction possibility is A i.e. Flexibility possibility Clarification: correction possibility is A i.e. Flexibility possibility flexibility possibility make simpler for company unit to resolve on manufacturing or uncooked materials on the idea of market situation. Abandonment possibility Because the title point out this selection provoke when company suffered large misplaced or when theres a conditioned of minimal money circulation attributable to any cause.

Get Answer for  4. Frederick Taylor is famous for____. a. developing time and motion studies b. first defining the functions o [Solved]

B Clarification: Timing possibility makes it attainable to change inputs or outputs in manufacturing course of.

This post is last updated on at Date : 1st of September – 2022