Including the Option to Expand in Your Project Analysis Will

question 81

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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Definitions:

Void Contracts

Agreements that are illegal or against public policy and therefore unenforceable by law.

Bilateral Contract

A contract in which the promise of one of the parties forms the consideration for the promise of the other.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by the other party.

Quasi-contract

A quasi-contract is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual agreement exists between the parties.