When an alternative decision rule disagrees with the net present value (NPV), the NPV should be followed.

Name: When an alternative decision rule disagrees with the net present value (NPV), the NPV should be followed.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

NPV is considered the most reliable decision rule that takes into account the time value of money and helps in maximizing the value of the project. If any alternative decision rule disagrees with the NPV, it should not be followed as it may lead to suboptimal decisions.

When an Alternative Decision Rule Disagrees with the Net Present