A problem with the NPV method of capital budgeting is:

Question

Quizplus · Accepted Answer

The NPV (Net Present Value) method does consider the time value of money, which eliminates option A. It does not result in percentages but in dollar amounts, eliminating option D. While it's possible to have varying NPV results based on different assumptions or inputs, stating that you may have "two different values" is not a commonly cited problem with NPV, making option C incorrect. The main issue with NPV is its complexity and the difficulty in explaining it to those without a financial background, making option B correct.

A Problem with the NPV Method of Capital Budgeting Is