adarsh 03 April 2020 at 17:36 PM

A company considers a project that would involve a new product and a new market.  Although the project has a positive NPV, the company decides not to invest in the new project at this time, because the market is just developing.  The company is not sure enough about the adequacy of the cash flows, due to the riskiness of the market.  This is an example of a) a timing real option. b) the real option to wait and learn more before investing. c) the real option to make follow-on investments. d) a flexibility in production real option.