Question: The option to expand operations will be: A. Less valuable if the uncertainty associated with the increased cash flows from the expanded operation is greater.
The option to expand operations will be:
| A. Less valuable if the uncertainty associated with the increased cash flows from the expanded operation is greater. | ||
| B .Less valuable if the cost of expansion is greater. | ||
| C.Less valuable if the time that is allowable to expand operations is greater. | ||
| D. More valuable if the current present value of the incremental cash flows from expansion are lower. | ||
| E. None of the above answers is correct. |
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