:

If a firm considering making a capital investment conducts NPV analysis and determines that the investment may need a major refurbishment halfway through its useful life, the firm should

• A :

  exclude the refurbishment costs in the NPV analysis.

• B :

  include the refurbishment costs in the NPV analysis.

• C :

  treat the refurbishment costs as a current present value.

• D :

  treat the refurbishment costs as a recurring payment.