The use of real options in capital budgeting
A) may raise the NPV of a capital project.
B) makes the analysis of the project considerably easier.
C) allows management to make decisions more quickly.
D) eliminates the need for calculating the project's risk adjusted discount rate.
A
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The "Got Milk?" advertising campaign is a good example of
A) advertising in a competitive market. B) how advertising in a competitive market does not pay off for a single firm. C) interest groups financed by the industry advertise for the whole industry. D) All of the above.
The crowding-out effect indicates that increased government borrowing will lead to:
a. an increase in consumption by households and an increase in investment spending by firms. b. an increase in consumption by households and a decrease in investment spending by firms. c. a decrease in consumption by households and an increase in investment spending by firms. d. a decrease in consumption by households and a decrease in investment spending by firms.