The potential decision to abandon a project has option value because: abandonment can occur at one specific...

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Finance

The potential decision to abandon a project has option valuebecause:
abandonment can occur at one specific point in the future.
management is locked into a negative outcome.
the project may be worth more if its commencement isdelayed.
future demand may exceed expectations.
a project may be worth more dead than alive.

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Transcribed Image Text

The potential decision to abandon a project has option valuebecause:abandonment can occur at one specific point in the future.management is locked into a negative outcome.the project may be worth more if its commencement isdelayed.future demand may exceed expectations.a project may be worth more dead than alive.

		abandonment can occur at one specific point in the future.
		management is locked into a negative outcome.
		the project may be worth more if its commencement isdelayed.
		future demand may exceed expectations.
		a project may be worth more dead than alive.