The advantages of NPV are all of the following EXCEPT
A) it recognizes the timing of the benefits resulting from the project.
B) it can be used as a rough screening device to eliminate those projects whose returns do not
materialize until later years.
C) it allows the comparison of benefits and costs in a logical manner through the use of time
value of money principles.
D) it provides the amount by which positive NPV projects will increase the value of the firm.
B
You might also like to view...
Mycah complains to her boss about working overtime by saying, "I don't see why I have to finish this project tonight." Her boss responds, "Because I'm the boss and I say so, that's why." Mycah's boss is displaying _________ power.
a. reward b. referent c. legitimate d. expert
The major difference between zero-based and incremental budgeting is the _____
a. degree of employee participation b. resulting budget amount obtained c. absence or presence of opportunity costs in the budgetary process d. starting point in the budget process