Question
Your firm is analyzing whether a project currently engaged in should be continued or abandoned. Which of the following is true regarding this question? Continue
Your firm is analyzing whether a project currently engaged in should be continued or abandoned. Which of the following is true regarding this question?
Continue the project if the total nominal sum of all expected future cash flows exceeds the current abandonment value. | ||
Continue the project if the total NPV of all expected future cash flows exceeds the current abandonment value. | ||
Abandon the project if the total NPV of all expected future cash flows is LESS than the current abandonment value. | ||
BOTH continue the project if the total NPV of all the expected future CFs exceeds the current abandonment value, AND abandon the project if the total NPV of all the expected future CFs is LESS than the current abandonment value (i.e. both of those other responses are correct) | ||
All of the other responses are correct |
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