Which of the following is not a difficulty in applying the net present value investment decision model to investments in advanced technologies?

Question

Quizplus · Accepted Answer

The other options listed (management bias toward incremental projects, use of short time horizons, and difficulty in quantifying synergistic benefits) are all common difficulties in applying the net present value investment decision model to investments in advanced technologies. However, using hurdle rates that are too low would actually lead to overinvestment and could result in a lower net present value. Therefore, it is not a difficulty, but rather a mistake in applying the model.

Which of the Following Is Not a Difficulty in Applying