1. The right but not the 1. The right but not the 1.
the 1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options
1. The right but not the
obligation to take some
future action.
2. It is the difference
between the expected
NPVs with and without
relevant option.
3. An option as to when to
begin a project.
4. An option that permits
operations to be altered
depending on how
conditions change during
project's life.
5. A comparison of actual
versus expected results for
a given capital project.
6. The size of the capital
budget where the rate of
return on the marginal
project is equal to the
marginal cost of capital.
7. The option of stopping a
project if operating cash
flows turn out to be lower
than expected.
8. A graph of the marginal
rates of return on
investment at different
levels of investment, ranked
from highest to lowest IRR.
9-10. Give 2 types of real
options