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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › real options
Hi Sir,
regarding the lecture.
the value of the project as an option (rather than just starting it now i.e. NPV) = the value of the option only.
in some technical articles/exam kit, there is a question of expanding a project. so in that case, the value of that project would be the NPV of the original project + value of option to expand.
is this correct?
Yes -that is correct 🙂
