Two or more investment opportunities score the same ENPV. What should the company do with respect to the projected cash flows on which the analysis is based?
A) Not consider the cash flows as risk has already been factored in the analysis and will be double counted.
B) Consider the cash flows on which ENPV was created as the option with the largest cash flow is the appropriate choice.
C) Always delay the project until more information resolves the tie.
D) Consider the cash flows as risk-adverse investors will choose the project with the lowest potential loss.
E) Not consider the cash flows and select the project on qualitative features alone.
Correct Answer:
Verified
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