Given That the Net Present Value (NPV) Is Generally Considered

Multiple Choice

Given that the net present value (NPV) is generally considered to be the best method of analysis, why should you still use the other methods?

A) The other methods help validate whether or not the results from the net present value
Analysis are reliable.
B) You need to use the other methods since conventional practice dictates that you only
Accept projects after you have generated three accept indicators.
C) You need to use other methods because the net present value method is unreliable when
A project has unconventional cash flows.
D) The average accounting return must always indicate acceptance since this is the best
Method from a financial perspective.
E) The discounted payback method must always be computed to determine if a project
Returns a positive cash flow since NPV does not measure this aspect of a project.