Problem 1) Which of the following are NOT real options?
A) The option to expand production if the product is successful.
B) The option to expand into a new geographic region.
C) The option to buy additional shares of stock if the stock price goes up.
D) The option to switch sources of fuel used in an industrial furnace.
E) The option to abandon a project.
Problem 2) The end-of-project recovery of any working capital required to operate the project should NOT be included in the cash flows used to estimate a project's NPV? True or False?