Which one of these has the least potential to increase the net present value of a proposed investment? Assume the project has a positive net present value in at least one set of circumstances.
A) Ability to wait until the economy improves before making the investment
B) Ability to immediately shut down a project should the project become unprofitable
C) Option to increase production beyond that initially projected
D) Option to place the investment on hold until a more favorable discount rate becomes available
E) Option to discontinue a project at the end of its intended life
Correct Answer:
Verified
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