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NPV analysis is the model of choice for many reasons, but does suffer from which of the following shortcomings? The fact that the decision rule
NPV analysis is the model of choice for many reasons, but does suffer from which of the following shortcomings?
| The fact that the decision rule changes for non-standard projects | ||
| The chance that the rule will produce two NPVs for the same project, both satisfying the definition of NPV | ||
| The inability to rank mutually exclusive projects correctly | ||
| The inability to incorporate the time value of money into decisions | ||
| The inability to incorporate new information once the project is underway |
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International Finance Theory And Policy
Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz
12th Global Edition
1292417005, 978-1292417004
