Which of the Following Have the Potential to Increase the Net

question 66

Multiple Choice

Which of the following have the potential to increase the net present value of a proposed investment?
I.Ability to immediately shut down a project should the project become unprofitable
II.Ability to wait until the economy improves before making the investment
III.Option to place the investment on hold until a more favorable discount rate becomes available
IV.Option to increase production beyond that initially projected

• A)I only
• B)I and IV only
• C)II and III only
• D)I, II, and IV only
• E)I, II, III, and IV

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Definitions:

Close Corporation

A private company characterized by a limited number of shareholders, and typically, more informal management and operations.

State Of Incorporation

The jurisdiction under whose laws a corporation is registered and operates, determining its legal obligations and protections.

Professional Corporation

A corporate structure available to licensed professionals, like doctors or lawyers, offering certain tax and liability advantages.

Malpractice

Professional misconduct or failure to exercise adequate skill, leading to the loss or injury of a patient, client, or customer.