The Net Present Value of a Growth Opportunity, NPVGO, Can

question 14

Multiple Choice

The net present value of a growth opportunity, NPVGO, can be defined as:

• A) the present value of an investment in one new project.
• B) the steady growth in dividends from continual re-investment with positive NPV.
• C) continual reinvestment of earnings when r < g.
• D) a single period investment when r > g.

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Definitions:

Circularity

A geometric tolerancing term that describes the condition where all points on a circular feature are equidistant from a common center, ensuring roundness.

Ovality

A measurement of deviation from a perfect circle, often used to describe the condition or imperfection in cylindrical objects.

Irregularity

A deviation from the norm or standard, often referring to shapes, patterns, or surfaces that do not follow a regular or predictable form.