The net present value decision technique may not be the only pertinent unit of measure if the firm is facing
A) time or resource constraints.
B) a labor union.
C) the election of a new board of directors.
D) a major investment.

Question

Quizplus · Accepted Answer

The net present value (NPV) technique might not be the sole relevant measure when a firm faces time or resource constraints because these constraints can limit the number of projects a firm can undertake, regardless of the projects' NPVs.

The Net Present Value Decision Technique May Not Be the Only