The primary problem with the NPV technique of capital budgeting is:
A) that many people without a background in financial theory may not understand it.
B) that there is no adjustments for risk.
C) an unclear decision rule.
D) the fact that it ignores the time value of money.
E) that it uses unorthodox time value of money techniques.

Question

Quizplus · Accepted Answer

The primary problem with NPV is that it is hard for someone without a finance background to understand it.

The Primary Problem with the NPV Technique of Capital Budgeting