Real options in capital budgeting can be classified.The classification that means that the project is delayed and can be termed "waiting to invest" is:

Question

Quizplus · Accepted Answer

An investment timing option refers to the decision to delay the investment until more information about the project is available. This option can be exercised when there is uncertainty about the future cash flows or when the project requires large upfront investments. By delaying the investment, the firm can gather more information about the market potential, competition, or technology, which may help them make more informed decisions. Thus, the option to wait and invest later is an example of a real option in capital budgeting.

Real Options in Capital Budgeting Can Be Classified