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Which of the Following Have the Potential to Increase the Net

Question 47

Multiple Choice

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


A) I only
B) I and IV only
C) II and III only
D) I, II, and IV only
E) I, II, III, and IV

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