The opportunity to defer investing to a later date may have value because

Question

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Deferring investing to a later date allows for potential changes in market conditions that could increase the net present value (NPV) of the project. This option is especially beneficial if it is uncertain whether the cost of capital will increase, as stated in options A and B. Option C, positive short-term cash flows, does not necessarily indicate whether deferring investment would be advantageous.

The Opportunity to Defer Investing to a Later Date May