Selecting the lowest cost technology:
A)Will result in the highest long-run NPV
B)Could rule out future flexibility
C)Will minimize the cost of future upgrades
D)May not permit future expansion

Question

Quizplus · Accepted Answer

While selecting the lowest cost technology may result in a lower initial investment, it could limit future flexibility in terms of upgrades and expansions. Therefore, it is important to balance the initial cost with long-term benefits and potential for growth.

Selecting the Lowest Cost Technology