Which of the following statements about the option to build flexibility into production facilities is (are) true?
A) Typically is more expensive.
B) Must consider the NPV of alternative uses.
C) May be valuable by allowing reconfiguration to produce of goods or service with higher profit.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All of the statements are true. Building flexibility into production facilities may be more expensive, but it can also generate higher profits by allowing for reconfiguration to produce goods or services with a better NPV. Therefore, it's important to consider the NPV of alternative uses before making a decision about whether to build flexibility into production facilities.

Which of the Following Statements About the Option to Build