Which of the Following Is a Disadvantage of the Net

question 103

Multiple Choice

Which of the following is a disadvantage of the Net Present Value rule?

• A)Can be misleading if inflows come before outflows
• B)Not necessarily consistent with maximizing shareholder wealth
• C)Ignores cash flows after the cutoff point
• D)Relies on accurate estimate of the discount rate

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Definitions:

Alkene Products

Compounds resulting from reactions involving alkenes, typically characterized by the presence of double bonds in their structure.

Cyclopentane

A cyclic hydrocarbon with the formula C5H10, consisting of a ring of five carbon atoms each bonded with two hydrogen atoms.

Organic Product

A compound resulting from organic reactions, primarily consisting of carbon atoms along with hydrogen, oxygen, nitrogen, and other elements.

Alkene Product

A type of hydrocarbon containing at least one carbon-carbon double bond, formed as the result of certain organic reactions.