What does the option of waiting to invest do to the following features of the project versus
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What does the option of waiting to invest do to the following features of the project versus making a project choice based on NPV alone?
(a) Riskiness of the project,
(b) Effective hurdle rate for the project,
(c) Probability that the project will be undertaken.
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a Since the option of waiting allows resolution of uncertainty it reduces the risk inherent in ...View the full answer
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