Question: Although the NPV method is presented as a superior strategic budgeting method compared to other metrics, the NPV method does have weaknesses. Which of the

Although the NPV method is presented as a superior strategic budgeting method compared to other metrics, the NPV method does have weaknesses. Which of the following is a weakness of the NPV method?

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The NPV method is dependent on the cost of capital.

The NPV method ignores to time value of money.

The NPV method may result in multiple values for non-normal projects.

The NPV method ignores cash flows after the cut off period.

The NPV method is biased towards longer life projects.

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To address the weaknesses of the Net Present Value NPV method lets evaluate each statement 1 The NPV method is dependent on the cost of capital NPV is ... View full answer

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