Which of the following are problems in using net present value to appraise an investment? 1. The difficulty of estimating future cash flows 2. The difficulty of selecting an appropriate discount rate 3. It does not take account of inflation. 4. The concept of net present value is difficult for non-accountants to understand. 1, 2, 3 and 4 1 and 2 only 1, 2 and 3 only 1, 2 and 4 only
Which of the following are problems in using net present value to appraise an investment? 1. The difficulty of estimating future cash flows 2. The difficulty of selecting an appropriate discount rate 3. It does not take account of inflation. 4. The concept of net present value is difficult for non-accountants to understand. 1, 2, 3 and 4 1 and 2 only 1, 2 and 3 only 1, 2 and 4 only
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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Which of the following are problems in using net present value to appraise an investment?
1. The difficulty of estimating future cash flows
2. The difficulty of selecting an appropriate discount rate
3. It does not take account of inflation.
4. The concept of net present value is difficult for non-accountants to understand.
1. The difficulty of estimating future cash flows
2. The difficulty of selecting an appropriate discount rate
3. It does not take account of inflation.
4. The concept of net present value is difficult for non-accountants to understand.
1, 2, 3 and 4
1 and 2 only
1, 2 and 3 only
1, 2 and 4 only
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