Which of the following conditions might lead a financial manager to delay a positive-NPV project? (Assume that project NPV-if undertaken immediately-is held constant.)
A)The risk-free interest rate falls.
B)Uncertainty about future project value increases.
C)The first cash inflow generated by the project is higher than previously thought.
D)Investment required for the project increases.

Question

Quizplus · Accepted Answer

An increase in uncertainty about future project value might lead a financial manager to delay a positive-NPV project to gather more information and reduce uncertainty, potentially improving the decision-making process.

Which of the Following Conditions Might Lead a Financial Manager