7...NPV is the best tool to use for capital budgeting because: a.It uses the IRR to discount cash flows as opposed to using the WACC. The IRR is a more appropriate discount rate. b.It provides a direct measure of the value that the project adds to shareholder wealth and properly considers the Time Value of Money. c.It can not handle non-normal cashflow streams. d.NPV isn't the best tool to use for capital budgeting.
7...NPV is the best tool to use for capital budgeting because: a.It uses the IRR to discount cash flows as opposed to using the WACC. The IRR is a more appropriate discount rate. b.It provides a direct measure of the value that the project adds to shareholder wealth and properly considers the Time Value of Money. c.It can not handle non-normal cashflow streams. d.NPV isn't the best tool to use for capital budgeting.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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27...NPV is the best tool to use for capital budgeting because:
a.It uses the
b.It provides a direct measure of the value that the project adds to shareholder wealth and properly considers the
c.It can not handle non-normal cashflow streams.
d.NPV isn't the best tool to use for capital budgeting.
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