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The Market Value of an Investment Project Should Be Viewed

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Essay

The market value of an investment project should be viewed as the sum of the standard NPV and the value of managerial options. Explain two different options that management may have, what they are, and how they would influence market value.


Definitions:

Cross-functional Team

A team composed of members from different functional areas of the company working towards a common goal.

Cross-functional Teams

Groups composed of members from different departments or areas within an organization, working towards a common goal.

Horizontal Integration

This strategy involves a company buying or merging with other companies in the same industry at the same stage of production.

Committee

A group that is designated to work on a special task on a continuing basis.

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