Which one of the following would be an example of a growth option to add when developing the adjusted net present value of a project?

Question

Quizplus · Accepted Answer

The award of another project by a satisfied customer from the current project is an example of a growth option. It represents an opportunity for future growth and revenue that is not included in the project's initial cash flow projections. The expansion of the nation's money supply, the cost of issuing securities, and the cost of financial distress are not growth options and do not represent future revenue opportunities.

Which One of the Following Would Be an Example of a Growth