One Limitation of the Net Present Value Approach to Investments

question 14

True/False

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

---

Definitions:

Colin Powell

An American military general and statesman who served as the first African American U.S. Secretary of State, known for his leadership during the Persian Gulf War.

Condoleezza Rice

An American political scientist and diplomat who served as the 66th United States Secretary of State, and was the first African American woman to hold the post.

Secretary of State

A senior official in the federal government responsible for conducting foreign affairs and diplomacy.

National Security Advisor

A senior official within the executive branch of the U.S. government who serves as the chief in-house advisor to the President on national security issues.