The Option to Wait

question 75

Multiple Choice

The option to wait:

• A)increases in value as the project's sensitivity to new technology increases.
• B)is independent of the project's discount rate.
• C)is valueless when a project is profitable given immediate implementation.
• D)decreases the net present value of a project.
• E)may have value even if a new project currently has a negative net present value.

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