When Managers Cannot Determine Whether to Invest Now or Wait

question 93

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 level.
• B) invest now to maximize the NPV.
• C) postpone until the opportunity cost reaches its lowest level.
• D) invest at the date that provides the highest NPV today.

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