The NPV uses the provision of assumption of the initial money to use. Too high capital assumption

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"The NPV uses the provision of assumption of the initial money to use. Too high capital assumption will hinder a good investment, and too low money will result in a suboptimal investment. In addition, the NPV method does not help compare two projects of different sizes because the size of the output depends on the size of the input."

Is the meaning talking of value? Wwhat is your perspective of the NPV method when there are multiple projects under consideration with unequal life?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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Posted Date: Aug 18, 2023 07:25 AM

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The NPV uses the provision of assumption of the initial money to use. Too high capital assumption

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The passage you provided seems to discuss the Net Present Value NPV method and its considerations when evaluating investment projects Lets break down ... View the full answer

Foundations of Financial Management

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