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Homework4.docx

Module 4 HW

Part A

Q1

Q2

Q3

Part B

Explain any 3 of the under listed at list 4 lines

1. What is real option to wait?  (MO1)

2. What is real option to abandon?  (MO 1)

3. Value “Real Option” = NPV with option - NPV without option (MO 1)

4. Compare Promised YTM and Expected YTM. (MO 2,3)

5. What is the Value at Risk (VaR) – (MO 2,3)

Part C

Explain all of the under listed

Describe budget selection process.

MO4.2 Evaluate decision making in different projects

MO4.3 Analyze model and measure values

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