Multiple Choice
Suppose a firm builds a plant with more space than the firm currently needs. What type of real option best describes the firm's behavior?
A) An abandonment option
B) An expansion option
C) A land option contract
D) A contraction option
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q37: Modern techniques are very good at incorporating
Q38: How can a value be assigned to
Q39: Next year, a cash flow is expected
Q40: Multidivisional companies with diverse operations should use
Q41: The Basalt Corporation is considering a new
Q43: Flexibility options let companies respond more easily
Q44: Which type of project is it most
Q45: Why may an analysis that makes even
Q46: Scenario analysis involves developing an NPV for
Q47: Which of the following is not a