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What is one disadvantage of NPV as a capital budget method? It is only useful for evaluating a single project in isolation. It cannot be
What is one disadvantage of NPV as a capital budget method?
It is only useful for evaluating a single project in isolation.
It cannot be interpreted without also knowing the payback period.
It is not an efficiency metric, so it does not capture percentage gain relative to the investment.
It can be unclear whether or not an investor should undertake a negative NPV project.
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