Difference between revisions of "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.
