If a project has both expansion and abandonment options,then the:
A)shorter the available life of the project the less valuable the project is.
B)longer the available life of the project the less valuable the project is.
C)options will offset each other and therefore add no value to the project.
D)project life becomes irrelevant.
E)project should always be accepted.

Question

Quizplus · Accepted Answer

Expansion and abandonment options both add value to a project. The longer the available life of the project, the more valuable these options become, as there is more flexibility and potential for future adjustments. A shorter project life limits these opportunities, making the project less valuable.

If a Project Has Both Expansion and Abandonment Options,then The