Spivey Corp Just Conducted a NPV Analysis on a $2,000,000

question 68

Multiple Choice

Spivey Corp just conducted a NPV analysis on a $2,000,000 project that resulted in a negative $1,000 NPV.Which of the factors below might make you reconsider the
Decision to reject the investment?

• A)The person who forecasted the cash flows is very optimistic when making forecast.
• B)The price of the investment might increase
• C)The cost of capital is expected to increase
• D)The period over which the asset is depreciated could be decreased.

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