Page 147 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Further aspects of investment appraisal

Real options in investment appraisal

Delay/Defer

Delay investment
without losing the
opportunity

Abandon Switch/Redeploy

Real
Continue or abandon Switch the use of
Options
at the end of each assets, should market
stage conditions change

Expand/contract

Adjust the scale of an

investment depending
on the market

conditions

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