In order for a manager to correctly decide to postpone an investment until one year into the future, the NPV of the investment should:
A) grow more rapidly than the IRR.
B) increase over that year.
C) not decrease.
D)remain stable.

Question

Quizplus · Accepted Answer

The correct decision to postpone an investment until one year into the future is based on the expectation that the Net Present Value (NPV) of the investment will increase over that year. This increase indicates that the investment will be more valuable in the future, justifying the delay.

In Order for a Manager to Correctly Decide to Postpone