In the context of real options, which of the following statements is FALSE? ...

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Finance

In the context of real options, which of the following statements is FALSE?

A.

The option to abandon a project may make the projects Adjusted Present Value positive.

B.

When evaluating a project, a company would normally set the hurdle rate equal to the projects opportunity cost of capital.

C.

It may be currently rational for a manager not to invest in a project with a positive Net Present Value.

D.

By delaying a project, a company may face some incremental costs.

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