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Author Question: Which statement about the NPV is true? (Read 28 times)

bvyeehaw

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Which statement about the NPV is true?

The NPV method was once the favourite of academics and business executives, but today most authorities regard the discounted payback method as being the best indicator of a project’s profitability.


The NPV and IRR methods may give different recommendations regarding which of two mutually exclusive projects should be accepted, but they always give the same recommendation regarding the acceptability of a normal, independent project.


A project’s NPV depends on the total net amount of cash flows the project produces, but because the cash flows are discounted at the IRR, it does not matter if the cash flows occur early or late in the project’s life.


The NPV method is regarded by most academics as being the best indicator of a project’s profitability; hence, most academics recommend that firms use only this one method.



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Marked as best answer by bvyeehaw on Aug 7, 2023

ealonif

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bvyeehaw

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


matt95

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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