If a ﬁrm has the option of growing at a 10% rate versus a 7% rate, should the ﬁrm always opt for the
higher rate of growth? Explain why or why not.

Name: If a ﬁrm has the option of growing at a 10% rate versus a 7% rate, should the ﬁrm always opt for the higher rate of growth? Explain why or why not.
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The Answer of If a ﬁrm has the option of growing at a 10% rate versus a 7% rate, should the ﬁrm always opt for the
higher rate of growth? Explain why or why not.

If a ﬁRm Has the Option of Growing at a 10