There is an inconsistency in using the net present value method as best for capital budgeting decisions and then using a different method to evaluate performance.

Question

Quizplus · Accepted Answer

If net present value is considered the best method for capital budgeting decisions, it should also be used to evaluate the performance of those decisions. Using a different method could lead to inconsistent evaluations and decision-making.

There Is an Inconsistency in Using the Net Present Value