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Valuing the Option to Wait

Question 33

Multiple Choice
Valuing the option to wait:

Valuing the option to wait:


A) can result in a negative option value.
B) assumes the NPV of a project commenced today is negative.
C) is unaffected by a project's discount rate.
D) is dependent upon a wait time of three years or less.
E) requires at least two NPV calculations as of Time 0.

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