The Timing Option That Gives the Option to Wait: I

Multiple Choice

The timing option that gives the option to wait: I. may be of minimal value if the project relates to a rapidly changing technology.
II) is partially dependent upon the discount rate applied to the project being evaluated.
III) is defined as the situation where operations are shut down for a period of time.
IV) has a value equal to the net present value of the project if it is started today versus the net present value if it is started at some later date.

A) I and III only
B) II and IV only
C) I and II only
D) II, III, and IV only
E) I, II, and IV only