Which of the Following Is Not an Advantage of Using

question 79

Multiple Choice

Which of the following is not an advantage of using the net present value (NPV) approach to evaluate investments?

• A) NPV is relatively easy to calculate.
• B) NPV calculations can be adjusted for risks.
• C) Unlike internal rate of return, NPV always yield only one answer.
• D) NPV allows the comparison of investments with different sizes of initial investment.

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Definitions:

Tariff Rates

Taxes imposed by a government on imported goods, which can affect international trade by increasing the cost of imported products.

Net Welfare Loss

The decrease in social welfare, often measured as the loss in efficiency or total wealth due to distortions, such as taxes or subsidies.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.

Institutionalized

Institutionalized refers to the process by which certain practices or norms become established and accepted in society or within an organization as formal structures.