Net present value:
A)cannot be relied upon when deciding between two mutually exclusive projects.
B)rule for project acceptance must be modified when comparing projects of varying sizes.
C)is less commonly used in business than the profitability index method of analysis.
D)is not as widely used in practice as payback and discounted payback.
E)provides the means for considering the risks associated with a specific project.

Question

Quizplus · Accepted Answer

The Answer of Net present value:
A)cannot be relied upon when deciding between two mutually exclusive projects.
B)rule for project acceptance must be modified when comparing projects of varying sizes.
C)is less commonly used in business than the profitability index method of analysis.
D)is not as widely used in practice as payback and discounted payback.
E)provides the means for considering the risks associated with a specific project.

Net Present Value