CFA Level I sample question

CFA Level I Capital Investments and Capital Allocation question

Corporate Issuers / Capital Investments and Capital Allocation

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Capital Investments and Capital Allocation sample question

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Corporate Issuers

Capital Investments and Capital Allocation

A project has an NPV of -2 million without flexibility. Management can pay 0.5 million today for an option to abandon the project if demand is weak, and this option is valued at 3 million. The most appropriate investment conclusion is:

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