CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

A company recently opened a limestone quarry at a location outside its traditional service area. Because limestone is a major ingredient in concrete, if the quarry is successful the company plans to build a ready-mix concrete plant at the same location. The investment in the concrete plant is best described as ______.
A. an externality
B. project sequencing
C. an example of investment synergy
Explanation: Project sequencing occurs when investment in one project creates the option to invest in future projects.

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