If entering a new market will not produce an immediate net present value,why would financial planners suggest entering this new market?

Question

Quizplus · Accepted Answer

Financial planners may suggest entering a new market that does not produce an immediate net present value because there is a possibility of follow-up investments. This means that while the initial investment may not be profitable immediately, it could generate profits in the future through additional investments or expansion in the market. It may also be a strategic move to diversify the company's portfolio and reduce reliance on a single market, which could minimize risk in the long run.

If Entering a New Market Will Not Produce an Immediate