Including the Option to Expand in Project Analysis Will Tend

question 4

Multiple Choice

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

Aided Recall Test

A performance metric in which respondents are asked to recall advertisements based on clues they receive to help stimulate their memory.

Unaided Recall Test

A measure of memory in which participants are asked to remember information without being given cues or hints.

Benchmark Test

An evaluation or test that uses a set of standards or an established reference point to measure the performance of a product or service.

Pretest

An evaluation of advertisements by a sample of targeted consumers before an ad campaign begins.