Which One of These Criticisms Applies to Net Present Value

question 51

Multiple Choice

Which one of these criticisms applies to net present value analysis?

• A)Net present value is too nearsighted.
• B)Net present value analysis cannot be integrated with sensitivity analysis.
• C)Real options cannot be included in net present value analysis.
• D)Managers may acquire a false sense of security based on a project's net present value.
• E)Net present value analysis cannot be integrated with scenario analysis.

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Definitions:

Business Messages

Communications conveyed within or from a business context, intended for internal or external audiences.

Back and Forth

A repeated movement or discussion going in one direction and then in the opposite direction.

Points

Main ideas, arguments, or pieces of information presented or considered in a discussion or analysis.

Subordinated

The act of placing someone or something in a lower rank or position, or making them of less importance or priority.