One of the Potential Special Problems with an Option to Abandon

One of the potential special problems with an option to abandon is that:

A) it can cost the firm more than the original investment.
B) competitors will try to buy the project at a reduced price.
C) there may be restrictions in the foreign country where the project is located that prevent or complicate abandonment of the project.
D) the parent may not want to abandon the project.

Correct Answer:

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