Including the option to expand in your project analysis will tend to:
A) Extend the duration of a project but not affect the project's net present value.
B) Increase the cash flows of a project but decrease the project's net present value.
C) Increase the net present value of a project.
D) Decrease the net present value of a project.
E) Have no effect on either a project's cash flows or its net present value.

Question

Quizplus · Accepted Answer

Including the option to expand in project analysis typically increases the net present value (NPV) of a project. This is because it adds potential future cash flows from the expansion, making the project more valuable.

Including the Option to Expand in Your Project Analysis Will