Including the Option to Expand in Your Project Analysis Will

question 380

Multiple Choice

Including the option to expand in your project analysis will tend to:

• A) Extend the duration of a project but not affect the project's net present value.
• B) Increase the cash flows of a project but decrease the project's net present value.
• C) Increase the net present value of a project.
• D) Decrease the net present value of a project.
• E) Have no effect on either a project's cash flows or its net present value.

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