a. The abandonment option tends to reduce a project's NPV.
b. The abandonment option tends to reduce a project's risk.
c. If there are important first-mover advantages, this tends to increase the value of waiting a year to collect more information before proceeding with a proposed project.
d. A project can either have an abandonment option or an investment timing option, but never both.
e. Investment timing options always increase the value of a project.
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