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Assume a proposed project is being evaluated using the standard method of estimating the initial investment required, annual revenues and expenses, the salvage value at

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Assume a proposed project is being evaluated using the standard method of estimating the initial investment required, annual revenues and expenses, the salvage value at the end of the project, and the appropriate cost of capital rate. If the analysis is modified by adding the option of abandoning the project after year 1, and by also adding the option to expand the project at the end of year 2, we would expect Select one: O a. the firm's cost of capital to decrease. O b. the net present worth of the project to decrease, c. the firm's cost of capital to increase. O d. the net present worth of the project to increase. All of the below would make a project more likely to be accepted, EXCEPT: Select one: a. A higher standard deviation of the net present worth of the project b. A higher expected net present worth of the project C. A higher net present worth of the project d. A lower variance of the net present worth of the project

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