Including the Option to Expand in Project Analysis Will Tend

question 4

Multiple Choice

Including the option to expand in 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)decrease the net present value of a project.
• D)increase 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:

Information Search

The stage in the buying process where consumers actively seek out information to fill a gap in their knowledge about products or services.

Consumer Purchase Decision

The process by which an individual decides what products or services to buy based on factors such as need, desire, and affordability.

External Environment

The outside factors and influences that affect an organization's decision-making process and performance, including economic, social, political, and technological factors.

Purchase Decision Process

The five stages a buyer passes through in making choices about which products and services to buy; includes problem recognition, information search, alternative evaluation, purchase decision, and postpurchase behavior.