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What is one disadvantage of npv as a capital budget method

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Reference no: EM132739605

Problem 1: What is one disadvantage of NPV as a capital budget method?

option 1: It cannot be used to compare investments with different upfront costs.

option 2: It does not deliver an overall picture of the gain or loss of implementing a project.

option 3: It can be misleading if inputs like cash flow turn out to be wrong.

option 4: It is rarely used, so there is disagreement as to what an adequate NPV is.

Reference no: EM132739605

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