Options models are used to assist in project selection decisions:
A. when IRR calculations are favorable but NPV calculations are unfavorable.
B. when a company may not recover the money it invests in a project.
C. when NPV calculations are favorable but IRR calculations are unfavorable.
D. when a company is guaranteed to recover the money it invests in a project.
Answer:B
Options models are used to assist in project selection decisions:
A. when IRR calculations are favorable but NPV calculations are unfavorable. B. when a company may not recover the money it invests in a project. C. when NPV calculations are favorable but IRR calculations are unfavorable. D. when a company is guaranteed to recover the money it invests in a project.