NPV analysis on a new project has been carried out to identify the crude NPV and the NPV of the expansion option. Which other three types of analysis should be carried out?
A) NPV of taking no action
B) NPV of the abandonment option
C) NPV of the timing option
D) NPV of other option possibilities

Question

Quizplus · Accepted Answer

The NPV of the abandonment option, timing option, and other option possibilities should be analyzed to fully understand the potential financial impacts and strategic flexibility of the project.

NPV Analysis on a New Project Has Been Carried Out