The opportunity to defer investing to a later date may have value because
I.the cost of capital may increase in the near future;
II.uncertainty may be increased in the future;
III.the project has positive, short-term cash flows;
IV.market conditions may change and increase the NPV of the project
A)I only
B)I and II only
C)III only
D)IV only

Question

Quizplus · Accepted Answer

The opportunity to defer investing allows for the possibility that market conditions may change in a way that increases the Net Present Value (NPV) of the project, making the investment more attractive at a later date.

The Opportunity to Defer Investing to a Later Date May