Given the Following Data for Project X: NPV of the Project

question 52

Multiple Choice

Given the following data for Project X: NPV of the project without abandonment: -$2 million; abandonment option value: $4 million. Calculate the adjusted present value (APV) of the project:

• A) -$2 million
• B) +$4 million
• C) +$2 million
• D) none of the above

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Definitions:

Kant

A philosopher known for his work in ethics, epistemology, and other fields of philosophy; not directly related to a legal or technical term.

Intuitionism

A philosophical theory emphasizing that moral truths are known through intuition, denying that moral properties are reducible to natural properties.

Rational Persons

Individuals who use reason and logic to make decisions, typically in economic theory, assuming that people aim to maximize their self-interest.

Correctness

The quality or state of being free from errors, inaccuracies, or faults.