Question: C) Reffering problem 3 part A and part B, Should a firm normally have more confidence in answer A or answer B? Why? Question 17Answer
C) Reffering problem 3 part A and part B, Should a firm normally have more confidence in answer A or answer B? Why? Question 17Answer a. Answer A in more confidence because it doesn't require considering all the cash flows. b. Answer B in more confidence because The NPV is preferred and gives more confidence because it incorporates the time value of money and considers all the cash flows. c. Answer B in more confidence because it provides a quicker assessment of investment viability. d. Answer A in more confidence because it's simpler to calculate
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