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The potential decision to abandon a project has option value because: abandonment can occur at one specific point in the future. a project may be

The potential decision to abandon a project has option value because:

abandonment can occur at one specific point in the future.

a project may be worth more dead than alive.

management is locked into a negative outcome.

future demand may exceed expectations.

the project may be worth more if its commencement is delayed.

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