What is the expected NPV of the project if the option to expand is considered?
A) $355,542
B) $671,545
C) $236,924
D) $711,084

Question

Quizplus · Accepted Answer

The correct answer is A because the expected NPV of the project if the option to expand is considered is $355,542. This is because the option to expand gives the company the flexibility to increase its production capacity in the future, which can lead to increased profits.

What Is the Expected NPV of the Project If the Option