Which of the following is considered an advantage of the net present value method of capital budgeting over the payback method?

Question

Quizplus · Accepted Answer

All of the choices (A, B, and C) are considered advantages of the NPV method over the payback method. The NPV method considers all cash flows, uses the firm's required rate of return to discount cash flows, and considers opportunity costs in its calculations. Therefore, D is the best choice.

Which of the Following Is Considered an Advantage of the Net