Multiple Choice
The NPV of an investment made today is $10,000.If postponed for one year,the NPV at that time will increase by $1,000.Which of the following is correct if the opportunity cost of the investment is 12%?
A) Postpone; the NPV increases by a positive amount.
B) Postpone; the NPV will be larger.
C) Invest now; NPV does not grow at a sufficient rate.
D) Invest now; always accept positive NPV projects.
Correct Answer:
Verified
Correct Answer:
Verified
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