Posted: October 5th, 2016
A Real Option Value is: Answer An option that been deflated by the cost of living index makes it a “real” option. An opportunity cost of capital. An opportunity to implement cost savings or revenue expansion in a flexible business plan. An objective function and a decision rule that comes from it.
Source: http://www.homeworkminutes.com/question/view/47619/ECO-550ECO-550-Midterm
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