The NPV Computed Using Static DCF Analysis Is _________ If

question 264

Multiple Choice

The NPV computed using static DCF analysis is _________ if the project gives us the opportunity to abandon the project if things go poorly; that is, it includes an option to abandon.

• A) Understated.
• B) Overstated.
• C) Accurately stated even.
• D) Not conservative enough.
• E) Useless.