If a Project Has a Positive NPV, Then the Real

question 79

True/False

If a project has a positive NPV, then the real options that are relevant to the project are not important to estimating the value of the project.

---

Definitions:

Residual Value

The projected worth of an asset upon the completion of its lifespan.

Composite Depreciation

A method of depreciation where a single depreciation rate is applied to the aggregate cost of multiple assets with similar characteristics and useful lives.

Heterogeneous Assets

Assets that are dissimilar in nature and cannot be easily substituted by or compared with each other within a market or industry.

Residual Value

The estimated value of an asset at the end of its useful life, often considered in leasing and depreciation calculations.