The Potential Decision to Abandon a Project Has Option Value

question 88

Multiple Choice

The potential decision to abandon a project has option value because:

• A)abandonment can occur at any future point in time.
• B)a project may be worth more dead than alive.
• C)management is not locked into a negative outcome.
• D)All of the above.
• E)None of the above.

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Definitions:

Readily Experienced

Something that is easily or frequently encountered or felt.

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