The Net Present Value of a Growth Opportunity, NPVGO, Can

Multiple Choice

The net present value of a growth opportunity, NPVGO, can be defined as:

A) the initial investment necessary for a new project.
B) the net present value per share of an investment in a new project.
C) a continual reinvestment of earnings when r <G

D) a single period investment when r >G
E) None of the above.