Question: The potential decision to abandon a project has option value because: abandonment can occur at one specific point in the future. management is locked into
The potential decision to abandon a project has option value because:
| abandonment can occur at one specific point in the future. | ||
| management is locked into a negative outcome. | ||
| the project may be worth more if its commencement is delayed. | ||
| future demand may exceed expectations. | ||
| a project may be worth more dead than alive. |
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