Answer (D) is correct . Real options include such factors as the ability to abandon the project early, the opportunity for follow-up investments or ability to create new products, the ability to base additional cash outflows on a wait-and-learn opportunity, or the option to change capacity during the project. Risk-adjusted discount rates are not real options but are a form of sensitivity analysis.
Answer (A) is incorrect because Abandonment is an example of a real option.
Answer (B) is incorrect because Follow-up investment is an example of a real option.
Answer (C) is incorrect because The option to wait and learn is an example of a real option.
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