Commodore Corporation is deciding whether it makes sense to invest in a project today, or to postpone this decision for one year. Which of the following statements best describes the issues that Commodore faces when considering this investment timing option?
a. The investment timing option does not affect the expected cash flows and should therefore have no impact on the project’s risk.
b. The more uncertainty about the project’s future cash flows the more likely it is that Commodore will go ahead with the project today.
c. The waiting option can influence the cash flow and risk of the project.
d. None of the above statements is correct.