In a Decision Tree,caution Should Be Used in the Analysis

Multiple Choice

In a decision tree,caution should be used in the analysis because:

A) early stage decisions are probably riskier and should not likely use the same discount rate.
B) if a negative NPV is actually occurring, management should opt out of the project and minimize the firm's loss.
C) decision trees are only used for financial planning.
D) Both early stage decisions are probably riskier and should not likely use the same discount rate; and decision trees are only used for financial planning.
E) Both early stage decisions are probably riskier and should not likely use the same discount rate; and if a negative NPV is actually occurring, management should opt out of the project and minimize the firm's loss.