Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)One way to see why you sometimes choose not to invest in a positive-NPV project is to think about the decision of when to invest as a choice between two mutually exclusive projects: (1)invest today or (2)wait.
• B)You invest today only when the NPV of investing today exceeds the value of the option of waiting,which from option pricing theory we know to be always positive.
• C)When you do not have the option to wait,it is optimal to invest in any positive-NPV project.
• D)When you have the option of deciding when to invest,it is usually optimal to invest only when the NPV is positive but close to zero.

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