Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) Aside from the current NPV of the investment, other factors affect the value of an investment and the decision to wait.
• B) The option to wait is most valuable when there is a great deal of uncertainty regarding what the value of the investment will be in the future.
• C) The smaller the cost of waiting, the less attractive the option to delay becomes.
• D) It is always better to wait to invest unless there is a cost to doing so.

---

Definitions:

Actual Authority

The explicit power given to an agent or representative by a principal, allowing them to make decisions and act on the principal's behalf.

Apparent Authority

Apparent authority refers to a situation where a person appears to have the authority to act on behalf of another (such as an employer) even if no actual authority has been granted, leading others to reasonably believe in that authority.

Mutual Agreement

An accord reached by two or more parties who have made concessions to each other to resolve a conflict or reach a decision.

Notified

Informed or made aware, often in a formal or official manner.