Question: The option to expand operations will be: a More valuable if the uncertainty associated with the increased cash flows from the expanded operation is greater.
The option to expand operations will be:
| a | More valuable if the uncertainty associated with the increased cash flows from the expanded operation is greater. | |
| b | More 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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