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When Can Real Options Be Useful?

Define the concept of real options. Describe an instance in your professional life (current employer or past employer) where a real option could have been useful.

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The concept of a real option takes the economic conditions into consideration. When we use a real option, we adjust our operations strategies to match the state of the economy and other internal conditions. If we analyze a potential project and there is a positive net present value and we have the resources to successfully ...

Solution Summary

Define the concept of real options. Describe an instance in your professional life (current employer or past employer) where a real option could have been useful.

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