One weakness of the net present value method is that it provides an answer in dollar terms while many managers focus on percentage returns when assessing projects.

Question

Quizplus · Accepted Answer

The net present value (NPV) method indeed provides results in dollar terms, which can be a limitation when managers prefer to evaluate projects based on percentage returns, such as the internal rate of return (IRR) or return on investment (ROI), to compare the efficiency of different investments.

One Weakness of the Net Present Value Method Is That