Rejecting an investment today forever may not be a good choice because:
A) the size of the firm will decline.
B) there are always errors in the estimation of NPVs.
C) the option value is negative.
D) the company's foregoing the future rights or option to the investment.

Question

Quizplus · Accepted Answer

Rejecting an investment today means the company loses the opportunity to invest in it in the future, potentially missing out on future benefits if circumstances change.

Rejecting an Investment Today Forever May Not Be a Good