Because the NPV and PI Methods Both Yield the Same

question 69

True/False

Because the NPV and PI methods both yield the same accept/reject decision,a company attempting to rank capital budgeting projects for funding consideration can use either method and get the same results.

---

Definitions:

Timeliness

The ability of a company to deliver a good or service by the time a customer expects to have it available for sale or consumption.

Stated Lead Time

The period that a supplier promises for the delivery of goods or services to a customer.

Order Problems

Issues or challenges that arise during the order fulfillment process, potentially affecting customer satisfaction and operational efficiency.

Brand Loyalty

The tendency of consumers to continuously purchase the same brand’s products over substitutes due to their preference or satisfaction.