All of the Following Are Strengths of NPV EXCEPT

question 19

Multiple Choice

All of the following are strengths of NPV EXCEPT

• A) it works equally well for independent and mutually exclusive projects.
• B) managers have a preference for using a statistic that is in percent instead of dollars.
• C) it uses a conservative reinvestment rate assumption.
• D) these are all strengths of the NPV statistic.

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Definitions:

Full Warranty

A comprehensive guarantee that promises to repair or replace a defective product within a specified time frame without any cost to the consumer.

Nonconforming Goods

Products shipped to a buyer that do not meet the specifications or quality standards agreed upon in the contract.

Merchant Seller

A business or individual that sells goods to consumers in the course of their trade or business.