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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