Assume a Project Currently Has a Negative Net Present Value

question 39

Multiple Choice

Assume a project currently has a negative net present value.Which one of these expectations would indicate that the timing option for that project may have a positive value?

• A)The life of the project's product is expected to decrease each year.
• B)Competition in the project's product market is on the increase.
• C)The demand for the project's product is expected to decrease within 6 months.
• D)The project's cash flow projections are expected to remain constant over time.
• E)The contribution margin for the project is expected to improve next year.

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