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Real options,such as the option to expand a lucrative project,cancelan underperformingproject, or delay a project until the market is ready for it always increase the

Real options,such as the option to expand a lucrative project,cancelan underperformingproject, or delay a project until the market is ready for it always increase the value of a project (options can never reduce the value of a project) and should always be included in capital budgeting decisions.

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