Identify the real options present in investments

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Entraq plc is considering two proposals to invest in the manufacture of solar panels:

Proposal A - to build a customised plant with specialist staff in Cornwall, which can only be used to construct solar panels. This proposal would build Entraq's profile in the solar panel industry.

Proposal B - to use more expensive machinery in Entraq's existing premises in Basingstoke that could be adapted to produce components for the wind power industry.

A general election is expected next year that will affect the likely growth of the solar panel industry.

Required:

Identify the real options present in these investments.

Reference no: EM132707612

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