Which of the Following Is a Limitation of Secondary Analysis

question 29

Multiple Choice

Which of the following is a limitation of secondary analysis of existing data?

• A) The data is mostly inaccessible.
• B) This method is inconvenient and tedious.
• C) This method is expensive when compared with other methods.
• D) Researchers cannot look at trends and changes over time.
• E) Determining the accuracy and authenticity of historical data may be difficult.

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Definitions:

NPV

Net Present Value is a method used to evaluate the attractiveness of an investment or project by calculating the present value of expected future cash flows using a specific discount rate.

NPV Profiles

NPV profiles are graphical representations that show the relationship between a project’s net present value and the discount rate applied to its cash flows.

Cash Flows

The net amount of cash being transferred into and out of a business, considered essential for assessing its financial health.

Cost of Capital

The cost of capital is the rate of return that a company must earn on its investment projects to maintain its market value and attract funds.