Academics are always telling us the Net Present Value (NPV) method of evaluating investment proposals is the best and most correct of all the methods available. Why do you think they say this? In other words, what is it about the NPV method that makes academics prefer it to all other methods?

A second issue about the NPV is if it is so great, why dont all companies everywhere use it? For that matter, why dont all individuals use it? In other words, what is it about the NPV method that makes people want to use, say, the IRR or payback period methods to evaluate investments instead?