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As long as the NPV of a project declines smoothly with increases in the discount rate,the project is acceptable if its:
Employee Stock Options
A type of compensation given to employees, offering the right to purchase company stock at a specific price within a set period.
Call Options
Financial contracts giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.
Preferred Stock
A class of ownership in a corporation with a fixed dividend that is paid before any dividends are paid to common stockholders, typically without voting rights.
Common Stock
Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, subject to business performance.
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