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?
A) The NPV method may result in multiple values for non-normal projects.
b) The NPV method is biased towards longer life projects.
c) The NPV method is dependent on the cost of capital.
d) The NPV method ignores cash flows after the cut off period.
e)The NPV method ignores to time value of money.
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