Net present value is generally considered to be method

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

You need to use other methods because the net present value method is unreliable when a project has unconventional cash flows.

You need to use the other methods since conventional practice dictates that you only accept projects after you have generated three accept indicators.

The other methods provide results that are generally easier to understand than a net present value analysis.

The average accounting return must always indicate acceptance since this is the best method from a financial perspective.

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

Reference no: EM13805497

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