Options Models Are Used to Assist in Project Selection Decisions

Multiple Choice

Options models are used to assist in project selection decisions:

A) when IRR calculations are favorable but NPV calculations are unfavorable.
B) when a company may not recover the money it invests in a project.
C) when NPV calculations are favorable but IRR calculations are unfavorable.
D) when a company is guaranteed to recover the money it invests in a project.