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The Exercise Price of the Real Option to Abandon Is

Question 42

Multiple Choice

The exercise price of the real option to abandon is:


A) payouts necessary to terminate leases and employees and payoffs to local government officials.
B) payouts necessary to terminate leases and employees and taxes,regulatory or financing penalties.
C) payouts to terminate leases and employees and the cost of transporting project assets back to the parent's premises.
D) payouts to terminate leases and employees and damage to the firm's reputation.

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