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    Global Business Management: Capital Investments and Budgeting

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    1.What are some large capital investments that have a high degree of uncertainty and flexibility that would make managers think in terms of real options rather than NPV?
    2.What are the expectations for a manager or an employee involved with the capital budgeting of a project?

    190 words.

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    https://brainmass.com/business/capital-budgeting/global-business-management-capital-investments-budgeting-349813

    Solution Preview

    1. Large capital projects where the degree of uncertainty is high, traditional NPV analysis would fail to give desired results due to the underlying assumption in NPV that assumes a fixed scenario in which a company starts and completes a project, which then generates cash flow during some ...

    Solution Summary

    The solution determines real options rather than NPV based on large capital investments and expectations for a manager or an employee involved with the capital budgeting of a project.

    $2.19

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