Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Fundamentals of Corporate Finance (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134475561
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 9, Problem 11CC
Summary Introduction

Real Options: Real option refers to the right available to invest in a particular business or project, but without any obligation to make such investment decision. Therefore, a real option is taken only when it improves the net present value of the business.

To Explain: Real option.

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