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

Time or resource constraints may require the use of other decision techniques, such as the payback period or internal rate of return, in addition to the NPV method. A labor union or the election of a new board of directors would not affect the use of the NPV technique, while a major investment would require the use of some decision-making method to evaluate the potential return on investment.

The Net Present Value Decision Technique May Not Be the Only