Quiz Ch 10 – Identification of Real Options
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
Which of the following is NOT considered a real option?
Which of the following is NOT considered a real option?
Which of the following is NOT a drawback of sensitivity analysis?
Which action does NOT serve as an indication of the option to abandon a project?
Which scenario does NOT represent a viable option for expanding a project?
When does the NPV break-even point happen?
Which simulation output, showing the distribution(s) of the project, is likely to be the most useful and easy to interpret?
Under what circumstances does Monte Carlo simulation prove to be most beneficial?
Which project option contributes to increased managerial flexibility?
Which tool is the most suitable for making a final recommendation on the project upon completing the project analysis?
In general, what device is commonly utilized to generate simulations in Monte Carlo models for project analysis?