The value of real option analysis comes from the value of time (to wait and make a decision)and from the riskiness of the project.

Question

Quizplus · Accepted Answer

Real option analysis involves evaluating the value of waiting before making a decision, which can be valuable in projects with significant uncertainties or where timing is important. Additionally, the riskiness of the project can impact the potential value of real options. Therefore, the statement is true.

The Value of Real Option Analysis Comes from the Value