Assume That It Will Cost You $1 Million to Shut

question 42

Multiple Choice

Assume that it will cost you $1 million to shut down the plant,but you are able to sell the plant for $5 million at any time.The value of the option to sell the plant will be closest to:

• A)$3.0 million
• B)$6.0 million
• C)$5.0 million
• D)$0.5 million

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Definitions:

IQ Scores

Numerical measures of a person's intellectual abilities based on standardized tests.

High Self-esteem

A positive evaluation of oneself, reflecting a person's belief in their own worth and abilities.

Narcissists

Individuals who regard themselves as better than others and are constantly trying to win the admiration of others.

Competent

having the necessary ability, knowledge, or skill to do something successfully.