Which of the Following Is a Disadvantage of the Net

question 82

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
• E)Often an incorrect decision will result

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Definitions:

Depositional Feature

Depositional features are structures formed by the accumulation of sediment from wind, water, ice, or biological activity, including deltas, dunes, and sandbars.

Velocity

The speed and direction of an object's motion.

Curve

A smooth, continuous line or surface that deviates from being straight, often described in mathematics and geometry.

Stream Profile

The longitudinal profile of a stream, showing changes in elevation from its source to its mouth, often used in geomorphology.