Question: What is a potential pitfall of the net present value ( NPV ) method? It generally ignores risk or uncertainty. It cannot be used to

What is a potential pitfall of the net present value (NPV) method?
It generally ignores risk or uncertainty.
It cannot be used to evaluate a project where the required rate of return varies over the life of the investment.
It is as reliable as the discount rate used.
It uses cash flows rather than net earnings and ignores depreciation.

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