Which one of the following statements is most CORRECT?   a. Real options change the risk, but not the size, of projects' expected NPVs.     b. Very few projects have real options. They are theoretically interesting but of little practical importance.     c. Real options are more valuable when there is very little uncertainty about the true values of future sales and costs.     d. Real options change the size, but not the risk, of projects' expected NPVs.     e. Real options can reduce the cost of capital that should be used to discount a project's expected cash flows.

Q: Please show all equations and work as needed. If possible, please type the work so that it may be…

A: A real option is an option available to the firm’s managers with respect to investment opportunities…

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Q: True or False

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A: Scenario analysis is the prediction of the future value of the investment based on the possible…

Q: statement

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Q: None

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.