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What is one disadvantage of NPV as a capital budget method? Although the weighted average cost of capital is commonly used as the discount rate,
What is one disadvantage of NPV as a capital budget method?
Although the weighted average cost of capital is commonly used as the discount rate, it is not a perfect input.
It can be very difiticult to calculate, even if inputs like cash flows are quite clear.
It cannot be used to compare mutually exclusive investments.
It can only be used to evaluate bonds.
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