The NPV of an Investment Made Today Is $10,000

question 43

Multiple Choice

The NPV of an investment made today is $10,000.If postponed for one year, the NPV at that time will increase by $1,000.Which of the following is correct if the opportunity cost of the investment is 12 percent?

• A)postpone; the NPV increases by a positive amount.
• B)postpone; the NPV will be larger.
• C)invest now; NPV does not grow at a sufficient rate.
• D)invest now; always accept positive NPV projects.

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