The Advantages of NPV Are All of the Following EXCEPT

question 8

Multiple Choice

The advantages of NPV are all of the following EXCEPT

• A) it can be used as a rough screening device to eliminate those projects whose returns do not materialize until later years.
• B) it provides the amount by which positive NPV projects will increase the value of the firm.
• C) it allows the comparison of benefits and costs in a logical manner through the use of time value of money principles.
• D) it recognizes the timing of the benefits resulting from the project.

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Definitions:

Color

The characteristic of visual perception described through hues, saturation, and brightness, which results from the way an object reflects or emits light.

Global Climate Change

A long-term change in the Earth's climate, especially a change due to an increase in the average atmospheric temperature.

Rising Sea Levels

The increase in the level of the world's oceans due to the effects of global warming.