Rejecting an Investment Today Forever May Not Be a Good

question 32

Multiple Choice

Rejecting an investment today forever may not be a good choice because:

• A)the size of the firm will decline.
• B)there are always errors in the estimation of NPVs.
• C)the option value is negative.
• D)the company is forgoing the future rights or options to the investment.
• E)None of the above.

---

Definitions:

Interstate Commerce

The trade, traffic, or transportation of goods or services across state lines within the United States.

Overtime Pay

Additional compensation required by law to be paid to eligible employees for hours worked beyond the standard workweek.

Workers' Compensation Law

Legislation that provides financial compensation and medical care for workers who are injured or become ill as a direct result of their job.

Promptly Sue

To take legal action against a person or entity without undue delay, typically to address a grievance or enforce a right.