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Assume the Following Data for Project X: NPV of the Project

Question 32

Multiple Choice

Assume the following data for Project X: NPV of the project without abandonment: −$2 million; abandonment option value: $4 million. Calculate the adjusted present value (APV) of the project.


A) −$2 million
B) −$4 million
C) +$2 million
D) +$4 million

Correct Answer:

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