An Insight Gained by Bringing the Theory of Options into Standard

Multiple Choice

An insight gained by bringing the theory of options into standard capital budgeting analysis is:

A) independent projects with positive NPVs should very often be rejected.
B) independent projects with negative NPVs should very often be accepted.
C) projects, as call options, can be more valuable if the decision to start up the project is delayed until relevant information is released.
D) projects, as call options, can be less valuable if the decision to start up the project is delayed until relevant information is released.