What is one disadvantage of NPV as a capital budget method? It can be misleading if inputs
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What is one disadvantage of NPV as a capital budget method?
- It can be misleading if inputs like cash flow turn out to be wrong.
- It does not deliver an overall picture of the gain or loss of implementing a project.
- It is rarely used, so there is disagreement as to what an adequate NPV is.
- It cannot be used to compare investments with different upfront costs.
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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