Which of the Following Conditions Might Lead a Financial Manager

question 58

Multiple Choice

Which of the following conditions might lead a financial manager to delay a positive-NPV project? (Assume that project NPV-if undertaken immediately-is held constant.)

• A)The risk-free interest rate falls.
• B)Uncertainty about future project value increases.
• C)The first cash inflow generated by the project is higher than previously thought.
• D)Investment required for the project increases.

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Definitions:

Valid

A deductive argument where the form is such that the conclusion must be true if the premises are assumed to be true.

Premises

Statements or propositions from which a conclusion is drawn in an argument, assumed to be true.

False

Not true or correct; erroneous or misleading.

Modus Tollens

A logical argument form that concludes the inverse of an antecedent from the denial of the consequent, typically structured as "If P, then Q. Not Q, therefore not P."