Maximizing the value for unconstrained project selection is an advantage of
A) economic value added.
B) net present value.
C) payback period.
D) total cost of ownership.

Question

Quizplus · Accepted Answer

Net present value takes into account the time value of money and calculates the present value of future cash flows, allowing for the comparison of projects with different timeframes and cash flows. This helps in maximizing the value for unconstrained project selection. Economic value added, payback period, and total cost of ownership do not take into account the time value of money and cannot be used to compare projects with different cash flows and timeframes.

Maximizing the Value for Unconstrained Project Selection Is an Advantage