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The opportunity to defer investing in a project until a later date may have value primarily because: __________

a. the option to abandon may disappear.
b. investment costs tend to increase over time.
c. market conditions may improve.
d. the cost of capital may increase.
e. project cash flows may be lower in the future.

Sagot :

Answer:

c. market conditions may improve.

Explanation:

Investing in the right time and at the right place is very important. It can help to make money or profit or to loose money.

When a company permanently rejects the opportunity to invest in a project to day may not be a good or a wise decision mainly because the company is foregoing all the possible future options. And so the opportunity to postpone an investment by a company in a project until another time in the future has value as in the future the market condition may improve. And it will be better to invest at that time in the project.

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