Which of the Following Is an Advantage of Using the Real

Multiple Choice

Which of the following is an advantage of using the real options approach of evaluating a project?

A) It results in better technology investment decisions than a cash flow analysis approach.
B) It is useful as technology investment scenarios often conform to the same capital market assumptions upon which the approach is based.
C) It is cheap to use in case of a firm undertaking solo new product development.
D) It is valuable only when there is no uncertainty in technology trajectories.