Which One of the Following Statements Is Correct

Multiple Choice

Which one of the following statements is correct?

A) Having the ability to temporarily cease operations is referred to as the option to abandon.
B) Strategic options are relatively easy to evaluate using discounted cash flow analysis.
C) Ignoring the option to expand causes the net present value of a project to be overestimated.
D) The option to abandon a project has no real financial value.
E) Ignoring the option to abandon causes the net present value of a project to be underestimated.