To justify postponing a project for one year,the NPV needs to increase over that year by a rate that is equal to or greater than:
A) the project's IRR.
B) the risk-free rate.
C) the cost of capital.
D) zero.

Question

Quizplus · Accepted Answer

The NPV needs to increase by at least the cost of capital to justify postponing a project, as this represents the minimum return required by investors.

To Justify Postponing a Project for One Year,the NPV Needs