Start learning →

Project volatility for a real option is usually derived through

Abank statements
Bpayback analysis
CMonte Carlo method
Dratio trending
Answer & Solution
Correct answer: C. Monte Carlo method
Simulating the project's possible cash flow paths gives an estimate of the volatility of its value.
Practise this question with Quill — CA Final →

Keep practising Capital Budgeting

Browse all Capital Budgeting questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Capital Budgeting lesson →
Related questions