The managers of Collins Construction Co. have included an output flexibility option into the design of a proposed capital investment project: I. This option allows the outputs of the production process to be altered if market conditions change during a project's life. II. This option provides a firm with the flexibility to increase the capacity of an existing product line, to add new products, or to expand into new geographic markets. III. This option allows a firm to postpone a project until it can gather more information or market conditions change. IV. This option allows a firm to temporarily terminate operations in order to prevent experiencing negative cash flows. Which of the listed statements best describes an output flexibility option? Statement I Statement II Statement III Statement IV None of the statements listed above describes an output flexibility option