Which of the following conditions might lead a financial manager to decide to expedite a positive Net Present Value investment project that previously he/she had decided to delay?
A) The risk-free interest rate increases.
B) Uncertainty about future project value increases.
C) The cash inflows generated by the project is lower than previously thought.
D) Investment required for the project is expected to increase in the near future.

Question

Quizplus · Accepted Answer

If the investment required for the project is expected to increase in the near future, it would be advantageous to expedite the project to avoid the additional costs. None of the other conditions listed would lead to a decision to expedite a previously delayed investment project.

Which of the Following Conditions Might Lead a Financial Manager