Suppose the firm doesn't need to decide whether or not to commit to Project X) right now. Instead, the firm can wait until the end of the year to make a decision to commit or not (e.g. based on the status of the economy at the end of the year, and other circumstances unique to the company). . On the other hand, it will cost the firm $3.5 to invest in the project finstead of $1.5) if it waits until the end of the year. Recall this table from previous discussion: ($5.3 > $3.5) commit ($3.3 $3.5) commit ($3.3