What Are the Four Limitations of the Net Present Value

question 15

Essay

What are the four limitations of the net present value technique?

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Definitions:

Declines

Refers to a decrease in the value, amount, or quality of something, often observed in economic indicators or market trends.

Positive Slope

In mathematics, a line on a graph that shows a relationship where as one variable increases, so does the other.

Increasing

describes a situation or process where there is a growth or addition in quantity, size, number, or extent.

Negative Slope

A line or curve on a graph that descends from left to right, indicating an inverse relationship between two variables.