Industrialization Enterprise has the option to delay starting this project for one year so that analysts can gather more information about whether demand will be strong or weak. If the company chooses to delay the project, it will have to give up a year of cash flows, because the project will then be only a two-year project. However, the company will know for certain if the market demand will be strong or weak before deciding to invest in it if the company acompts the project now, it would mean that the company is the option to make a more informed decision. If the value of the option is than the value of the project, then the company is more likely to use the option. The time before expiration for the investment timing option is one year. Considering these qualitative factors, the company make a quantitative assessment of the option