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Business, 24.12.2019 00:31 genyjoannerubiera

Clemens inc. is considering a $100 million investment in a new line of soft drinks. however, $100 million is a huge investment for clemens; if things turn bad, it could wipe out the company. a few senior managers have suggested a smaller investment of $20 million to see if the market is as strong as they hope it is. if demand is strong and the opportunity is still available, clemens will increase its investment at a later date. this example describes a real option to

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Clemens inc. is considering a $100 million investment in a new line of soft drinks. however, $100 mi...
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