If your university decides to build five new dormitories in anticipation of higher enrollment next year,this is an example of an irreversible investment.

Question

Quizplus · Accepted Answer

Investing in building new dormitories is a long-term and irreversible decision that cannot be easily undone or reversed. It involves significant financial and resource commitments, which cannot be easily recouped if the enrollment projections do not materialize as expected. Therefore, it is considered an irreversible investment.

If Your University Decides to Build Five New Dormitories in Anticipation