ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project

Question:

ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project with the growth option is $742 and without the growth option is ($300). What is the value of this option?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...