Question: When compared to NPV analysis, which capital budgeting technique has disadvantages that include the following: Ignores cash flows beyond the cutoff date, requires an arbitrary
When compared to NPV analysis, which capital budgeting technique has disadvantages that include the following: Ignores cash flows beyond the cutoff date, requires an arbitrary cutoff point, is biased against longterm projects, and may reject positive NPV projects?
Question Select one:
a
NPV
b
IRR.
c
AAR.
d
Payback period.
e
Discounted payback.
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