The true expected value of a project with a growth option is the expected NPV of the project (including the value of the option)less the cost of obtaining that option.

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Quizplus · Accepted Answer

This is true. The true expected value of a project with a growth option takes into account the expected NPV of the project, which includes the value of the option, but also subtracts out the cost of obtaining that option. This gives a more accurate estimate of the project's true expected value.

The True Expected Value of a Project with a Growth