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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