Which One of These Has the Least Potential to Increase

question 22

Multiple Choice

Which one of these has the least potential to increase the net present value of a proposed investment? Assume the project has a positive net present value in at least one set of circumstances.

• A)Ability to wait until the economy improves before making the investment
• B)Ability to immediately shut down a project should the project become unprofitable
• C)Option to increase production beyond that initially projected
• D)Option to place the investment on hold until a more favorable discount rate becomes available
• E)Option to discontinue a project at the end of its intended life

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