Question: ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project with the growth option is $1,631 and without
ABC, Inc. has a potential capital budgeting project with a growth option. The NPV of the project with the growth option is $1,631 and without the growth option is $472. What is the value of this option to ABC?
| A. | $1,631 | |
| B. | $1,159 | |
| C. | $2,103 | |
| D. | None of the above |
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