Course Solutions Uncategorized (Answered) : What are the two limitations of the net present value approach that do not apply to investments only.

(Answered) : What are the two limitations of the net present value approach that do not apply to investments only.

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 7:40 pm
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What are the two limitations of the net present value approach that do not apply to investments only.

Expert Answer

N P V- its net present value of future assets if N P V> o then accept project, N P V< o reject the project , If N P V = o then its marginal. There are two limitation - 1 St N P V - N P V provides the mathematical approaches to determine the neat present value of particular assets in terms of money , where as inflation in money is uncontrollable factor. Thus additional risk of uncertainty is
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