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The Disadvantage of the NPV Method for Evaluating EC and IT

Question 20

Multiple Choice

The disadvantage of the NPV method for evaluating EC and IT is


A) the true benefits are difficult to measure.
B) it is difficult to compare projects of unequal lives or sizes.
C) it assumes reinvestment at the same rate.
D) it may be difficult to classify outlays as expenses or investments.

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