Which One of These Criticisms Applies to Net Present Value

question 61

Multiple Choice

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

• A)Net present value is too near-sighted.
• B)Net present value analysis cannot be integrated with Monte Carlo simulation.
• 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:

Age in Place

The ability to live in one's own home and community safely, independently, and comfortably, regardless of age, income, or ability level.

Self-Employed

An employment status where an individual works for themselves instead of an employer, often running their own business.

Full Time

Typically refers to employment or activities that require a standard number of hours per week, often considered to be around 35 to 40 hours.

Planned Retirement Community

A residential community designed with services and amenities to cater to the needs and activities of retired individuals, promoting a certain lifestyle.