Which of the Following Statements Is FALSE

question 56

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.

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Definitions:

El Niño

A climate pattern that occurs in the Pacific Ocean, characterized by the unusual warming of surface ocean waters in the central and eastern tropical Pacific.

Eastern Pacific Basin

A region of the Pacific Ocean bounded by the Americas to the east and Asia and Australia to the west, known for its deep ocean trenches and marine biodiversity.

Ocean Current

A continuous, directed movement of seawater generated by forces acting upon it such as wind, the Coriolis effect, breaking waves, and differences in temperature and salinity.

Ocean Currents

Large-scale water movements in the ocean basin, driven by wind, water density differences, and the Earth's rotation, influencing climate and marine ecosystems.