The Main Disadvantage of the NPV Method Is the Need

question 85

True/False

The main disadvantage of the NPV method is the need for detailed,long-term forecasts of free cash flows generated by prospective projects.

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Definitions:

Commercial Banks

Financial institutions that offer a wide range of services like accepting deposits, providing business loans, and offering basic investment products.

Pension Fund Managers

Pension fund managers are professionals responsible for managing investment strategies for pension funds to ensure there are sufficient assets to pay out retirees' pensions.

Private Equity Funds

Investment companies that raise funds from individuals and institutional investors and use the funds to take large stakes in a wide range of public and private companies.