If a Project Has Both Expansion and Abandonment Options,then The

question 16

Multiple Choice

If a project has both expansion and abandonment options,then the:

• A)shorter the available life of the project the less valuable the project is.
• B)longer the available life of the project the less valuable the project is.
• C)options will offset each other and therefore add no value to the project.
• D)project life becomes irrelevant.
• E)project should always be accepted.

---

Definitions:

Drive To Bond

An innate human drive to form connections and relationships with others.

E-to-P Expectancy

The belief that one's effort (E) will lead to a particular level of performance (P).

Self-confidence

The belief in one's abilities, qualities, and judgment, contributing to an individual's self-assuredness and ability to face challenges.

Four-drive Theory

A model that identifies four basic motivational drives—the drive to acquire, bond, comprehend, and defend—that influence human behavior.