Which of the following does not characterize NPV?
A) NPV is the simplest of all investment rules.
B) NPV incorporates all relevant information.
C) NPV uses all of the project's cash flows.
D) NPV discounts all future cash flows.

Question

Quizplus · Accepted Answer

NPV (Net Present Value) is not considered the simplest of all investment rules; in fact, simpler methods exist, such as the payback period. NPV is valued for its comprehensive approach, incorporating all relevant information, using all of the project's cash flows, and discounting all future cash flows to present value.

Which of the Following Does Not Characterize NPV