Including the option to expand in your 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) increase the net present value of a project.
D) decrease the net present value of a project.
E) have no effect on either a project's cash flows or its net present valuE.

Question

Quizplus · Accepted Answer

Including the option to expand typically allows for increased flexibility and potential profitability in the future, which can result in an increase in the net present value of the project.

Including the Option to Expand in Your Project Analysis Will