Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)If there is a lot of uncertainty,the benefit of waiting is diminished.
• B)In the real option context,the dividends correspond to any value from the investment that we give up by waiting.
• C)By delaying an investment,we can base our decision on additional information.
• D)Given the option to wait,an investment that currently has a negative NPV can have a positive value.

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Definitions:

Drop-Shipping

A product fulfillment strategy in retail where the store doesn't maintain an inventory of the items it sells. Rather, upon selling a product, the store orders it from a third party and arranges for it to be delivered straight to the buyer.

Manufacturer Storage

A logistics strategy where the manufacturer holds stock, typically in a warehouse, until it is ordered by retailers or customers.

Last Mile Delivery

The final step of the delivery process from a distribution center or facility to the end customer's destination, often seen as key to customer satisfaction and efficiency in logistics.

Transportation Cost

The expenses incurred in moving goods from one location to another, including freight, fuel, and maintenance costs.