Which of the following have the potential to increase the net present value of a proposed investment?
I.Ability to immediately shut down a project should the project become unprofitable
II.Ability to wait until the economy improves before making the investment
III.Option to place the investment on hold until a more favorable discount rate becomes available
IV.Option to increase production beyond that initially projected

Question

Quizplus · Accepted Answer

All the options listed can potentially increase the net present value (NPV) of a proposed investment by providing flexibility and opportunities to adapt to changing conditions, thus potentially enhancing returns or reducing risks.

Which of the Following Have the Potential to Increase the Net