The investment timing decision is aimed at analyzing whether the:
A) cash flows occur at the beginning or end of each time period.
B) payback period or NPV analysis should be used.
C) project is a borrowing or lending project.
D)investment should occur now or at some future point.

Question

Quizplus · Accepted Answer

The investment timing decision refers to whether the investment should occur now or at some future point. This decision is important, as it impacts the NPV of the project. By investing earlier, the investor has the potential to earn a higher return, but also exposes themselves to more risk. A later investment may be less risky, but the return may be lower. Therefore, choosing the appropriate timing of investment is crucial to maximizing the project's NPV.

The Investment Timing Decision Is Aimed at Analyzing Whether The