When Managers Cannot Determine Whether to Invest Now or Wait

question 15

Multiple Choice

When managers cannot determine whether to invest now or wait until costs decrease later, the rule should be to:

• A)Postpone until costs reach their lowest
• B)Invest now to maximize the NPV
• C)Postpone until the opportunity cost reaches its lowest
• D)Invest at the date that gives the highest NPV today

---

Definitions:

Thamhain

A methodology or framework for managing complex projects, emphasizing leadership roles and project team dynamics.

Analytical Skill

The ability to collect and analyze information, problem-solve, and make decisions based on available data.

Technical Expertise

Specialized knowledge, skills, and experience in a technical field, allowing for proficiency in solving specific problems.

Administrative Skill

The ability to manage tasks effectively, organize resources, and oversee operations within a business or project.