Which of the Following Is a Disadvantage of the Net

question 17

Multiple Choice

Which of the following is a disadvantage of the Net Present Value rule?

• A) not necessarily consistent with maximising shareholder wealth
• B) ignores cash flows after the cutoff point
• C) relies on an accurate estimate of the discount rate
• D) can be misleading if inflows come before outflows

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Definitions:

Punctuality

The state or quality of being on time.

Primary Appraisal

Primary Appraisal is the initial evaluation of how relevant and impactful a situation is to one's well-being, determining whether it is a threat, challenge, or harm.

Double Approach/Avoidance Conflict

A psychological conflict that occurs when a person faces a situation with both positive and negative aspects, leading to indecision.

Lewin

Refers to Kurt Lewin, a pioneering psychologist known for his field theory in social science.