Which of the following does the Net Present Value method of investment appraisal not address?

Question

Quizplus · Accepted Answer

The Net Present Value method of investment appraisal does not directly address qualitative factors such as environmental impact, corporate social responsibility, and employee satisfaction. However, these factors can be considered alongside the NPV calculation in a broader investment analysis. The NPV method addresses the whole of the relevant cash flows and considers the timing of these cash flows to determine the overall value of the investment.

Which of the Following Does the Net Present Value Method