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What is one advantage of NPV as a capital budget method? It is equally accurate whether cash flows are known or estimated. It accounts fully

What is one advantage of NPV as a capital budget method?

  • It is equally accurate whether cash flows are known or estimated.
  • It accounts fully for opportunity costs.
  • Cash flows and the discount rate are easy to accurately determine.
  • It is flexible, in the sense that the discount rate can be adjusted to account for factors like risk.

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