Answer Happy

3) Which of the following statements is FALSE? 1. Real options to wait can be less valuable in high-tech industries with rapid technological changes and first mover advantages. 2. When an independent project has no option to delay, we should usually invest in it when its NPV is greater than zero. 3. In the real option context, the forgone dividends correspond to the additional cost of the investment that we incur by delaying the investment. 4. Instead of raising the bar on the NPV, the hurdle rate rule reduces the discount rate. A. Statement 1. B. Statements 2 and 4. C. Statements 3 and 4. D. Statements 1 and 3.