The option to develop follow-on projects, expand markets, expand or retool plants, and so on that would not be possible without implementation of the project that is being evaluated is called ________.
A) growth option
B) timing option
C) flexibility option
D) abandonment option

Question

Quizplus · Accepted Answer

The growth option refers to the potential for future expansion or development of new projects that would not be possible without the implementation of the current project being evaluated. This option provides an opportunity for companies to achieve long-term growth and increased profitability. Timing option refers to the flexibility to delay a project until market conditions are more favorable. Flexibility option refers to the ability to adjust or modify the project in response to changing market conditions. Abandonment option refers to the ability to terminate the project if it is not performing well or if market conditions have changed drastically. While all these options are important, the growth option specifically addresses the potential for future expansion and is related to the evaluation of the current project's potential long-term benefits.

The Option to Develop Follow-On Projects, Expand Markets, Expand or Retool