Seneca Timber Lands Owns Several Acres of Prime Timberland

Multiple Choice

Seneca Timber Lands owns several acres of prime timberland. If the firm harvests the timber today, they could sell it for $4.5 million. However, Seneca believes that the timber will be worth $5.2
Million next year. Seneca should exercise the option to:

A) Abandon.
B) Wait.
C) Quit.
D) Retire.
E) Expand.