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

question 32

Multiple Choice

Assume 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)+$4 million

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