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Although the NPV method is presented as a superior strategic budgeting method compared to other metrics, the NPV method does have weaknesses. Which of the
Although the NPV method is presented as a superior strategic budgeting method compared to other metrics, the NPV method does have weaknesses. Which of the following is a weakness of the NPV method?
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The NPV method is dependent on the cost of capital.
The NPV method ignores to time value of money.
The NPV method may result in multiple values for non-normal projects.
The NPV method ignores cash flows after the cut off period.
The NPV method is biased towards longer life projects.
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