A disadvantage of the NPV method is that:
A) the actual return in terms of the percentage of the investment outlay is not revealed
B) optimum outcomes may not be achieved simply by ranking projects according to their NPVs
C) the method relies on the use of an appropriate discount factor for the circumstances
D) all of the options are disadvantages of the NPV method
Correct Answer:
Verified
Q16: A retailer invests $20 million in capital
Q17: Risk in finance:
A)is defined as the unmeasurable
Q18: A major deficiency of the ARR method
Q19: If average profit before depreciation is $145
Q20: A typical feature of investments is:
A)they are
Q22: The decision rule for net present value
Q23: Which of the following statements regarding profitable
Q24: An advantage of the net present value
Q25: The net present value of a project:
A)is
Q26: An oil company is examining a proposal
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