Give an example of an option to abandon a project. Why might this be of value?
What will be an ideal response?
The option to abandon a project as the estimated cash flows associated with it change over time also has value. Again,
it is this flexibility to adjust to new information that provides the value. For example, a project's sales in the first year or
two might not live up to expectations, with the project being barely profitable. The firm might then decide to liquidate
the project and sell the plant and all of the equipment. That liquidated value may be more than the value of keeping
the project going.
As a result, the value of abandoning the project and selling the technology might be more than the value of keeping the
project running. Again, it is the value of flexibility associated with the possibility of modifying the project in the future
Nin this case abandoning the projectNthat can produce positive value.
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A. Detective controls and protective controls. B. General controls and application controls. C. Network controls and transaction controls. D. Preventive controls and mandatory controls.
All shares authorized by the corporation's articles of incorporation must be issued and sold to shareholders immediately
Indicate whether the statement is true or false
____ connect unequal sentence elements
A) Subordinating conjunctions B) Conjunctive adverbs C) Coordinating conjunctions
When the celebrity CEO dies, retires or is discredited, the problem of _________ arises.
a. Finding an equally charismatic successor b. Persuading investors not to leave c. Routinizing charisma d. Winding up the organization