Examlex
The option for a firm to expand future production has value because:
Earnings
Income generated from a company's business activities over a certain period, often reported as net income.
Face Value
The nominal value or dollar value of a security stated by the issuer.
Contract Rate
The agreed-upon interest rate specified in a contract, often related to loans or financial agreements.
Market Rate
The prevailing rate of interest available on investments or the average cost of borrowing money in the market.
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