Synergy has decided to manufacture a video game that requires an initial cash outlay today. One year from now, Synergy will either continue to produce the gane if demand is strong or sell the game to a competior if demand is below expectations. Both scenarios are expected withequal probability. All else equal, the value of the option to abandon will inccrease if :

(a) the initial cost of the project decreases (b) the option to abndon occurs in year 2 (c) the discount rate rises (d) the probability of success deceases (e) none of the above