The NPV approach must be:
A) augmented by added analysis if there are a few imbedded options.
B) augmented by added analysis if a decision has significant imbedded options.
C) jettisoned if there are any embedded options.
D) computed carefully to identify the options.

Question

Quizplus · Accepted Answer

The NPV approach should be augmented by added analysis if a decision has significant embedded options. This is because the traditional NPV approach does not account for these options and can lead to inaccurate decision-making. Therefore, it is important to carefully analyze and identify any embedded options before making a final decision.

The NPV Approach Must Be