A new approach to evaluating alternatives under conditions of high environmental uncertainty that proposes it pays to have a broad range of options open is the
A) net present value.
B) real options approach.
C) stakeholder priority matrix.
D) risk assessment approach.
E) hurdle rate approach.

Question

Quizplus · Accepted Answer

The real options approach proposes that under conditions of high environmental uncertainty, it is beneficial to have a broad range of options open. This approach incorporates the value of flexibility and adaptability when evaluating alternatives, allowing decision-makers to adjust to changing circumstances and make decisions based on the most up-to-date information. The other options listed, such as net present value and hurdle rate approach, do not specifically address the importance of having a range of options open under conditions of high uncertainty.

A New Approach to Evaluating Alternatives Under Conditions of High