Difference between revisions of "Option to abandon"

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Option to abandon
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The option to terminate investments in the projects before completion. A firm may sometimes have the option to abandon a project, if the cash flows do not measure up to expectations.
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'''''Valuing an option to abandon a project can make otherwise unacceptable projects acceptable.'''''
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[[Category:finance]]
 
[[Category:finance]]
  
 
[[Category:Term]]
 
[[Category:Term]]

Latest revision as of 19:25, 27 August 2020

The option to terminate investments in the projects before completion. A firm may sometimes have the option to abandon a project, if the cash flows do not measure up to expectations.

Valuing an option to abandon a project can make otherwise unacceptable projects acceptable.