Including the Option to Expand in Your Project Analysis Will

question 65

Multiple Choice

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

Cognitive Inertia

The tendency of human minds to stick to existing thought patterns or beliefs, resisting changes even in the face of new information.

Significant Result

In statistical analysis, a result that is unlikely to have occurred by chance alone, according to a predefined threshold of probability, indicating a meaningful difference or relationship.

Repetitions

The act or process of doing or saying something again, often to learn or reinforce.

Chance

A concept referring to the occurrence of events in the absence of any obvious intention or cause.