BC Research regularly takes real options into account when evaluating its proposed projects.$$ Specifically, it considers the option to abandon a project whenever it turns out to be unsuccessful $($the abandonment option$),$ and it evaluates whether it is better to invest in a project today or to wait and collect more information $($the investment timing option$).$ Assume the proposed projects can be abandoned at any time without penalty.$$ Which of the following statements is CORRECT?

Select one:

a$.$ If there are important first$-$mover advantages, this tends to increase the value of waiting a year to collect more information before proceeding with a proposed project.

b$.$ The abandonment option tends to reduce a project's NPV$.$

c$.$ A project can either have an abandonment option or an investment timing option, but never both.

d$.$ Investment timing options always increase the value of a project.

e$.$ The abandonment option tends to reduce a project's risk.