Including the option to expand in project analysis will tend to

Question

Quizplus · Accepted Answer

Including the option to expand in project analysis adds potential future value to the project, as it allows for the possibility of capitalizing on successful outcomes or market conditions, thereby increasing the project's net present value (NPV). This is because the expansion option is essentially a form of real option that provides the project with additional flexibility and potential profitability, which is valued positively in NPV calculations.

Including the Option to Expand in Project Analysis Will Tend