The investment proposal with the greatest relative risk would have
Probability-tree analysis is best used when cash flows are expected to be
You are considering two mutually exclusive investment proposals, project A and project B. B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that
If two projects are completely independent (or unrelated), the measure of correlation between them is:
Managerial options can be viewed as
A managerial option, in effect,
When using a probability tree approach, we discount the various cash flows to their present value at
The presence of managerial, or real, options_______the worth of an investment project.