Question: You're discussing a project with a co - worker. The project involves raw options such as expanding the project. If successful or battening the project.
You're discussing a project with a coworker. The project involves raw options such as expanding the project. If successful or battening the project. If it fails, your coworker makes the following statement. This analysis is ridiculous. We looked at expanding or abandoning the project in years. There are too many options for us to examine because of this. Anything this analysis would give us is worthless.How would you evaluate this statement?Considering that with any capital budgeting project, there are infinite number of real options.When do you stop the option analysis on an individual project
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