When You Do Not Have the Option to Wait,it Is

question 52

Multiple Choice

When you do not have the option to wait,it is optimal to invest in ________ project.When you have the option of deciding when to invest,it is usually optimal to invest only when ________.

• A) any negative-NPV; the NPV is substantially greater than zero
• B) any positive-NPV; the NPV is substantially smaller than one
• C) any positive-NPV; the NPV is substantially greater than zero
• D) any zero-NPV; the NPV is substantially greater than zero

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Definitions:

Liquidation Date

The predetermined date on which an investment or venture is terminated, and all assets are liquidated.

Defined Contribution Pension Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with benefits depending on investment performance.

Bears All The Risk

A term indicating that one party in a transaction is responsible for any financial losses or risks that may arise, commonly used in insurance and investment contexts.

Variable Life

A type of life insurance policy that includes an investment component, where the cash value and death benefit can vary based on the performance of the investments.