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  3. Study Set
    Financial Management Theory and Practice Study Set 1
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    Exam 24: Decision Trees,real Options and Other Capital Budgeting Techniques
  5. Question
    A Project Has an Expected NPV of -$250,based on the Traditional
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A Project Has an Expected NPV of -$250,based on the Traditional

Question 2

Question 2

Multiple Choice

A project has an expected NPV of -$250,based on the traditional DCF analysis.However,the real option valuation shows that the expected NPV is $750.What is the value of the option?


A) $250
B) $500
C) $750
D) $1,000

Correct Answer:

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