The net present value/payback approach is a useful approach when
A)screening projects characterized by rapid technological advances
B)cash flow estimates are known with certainty
C)the more risky cash flows occur during the startup period
D)None of these

Question

Quizplus · Accepted Answer

The net present value/payback approach is useful for screening projects characterized by rapid technological advances because it helps in evaluating the profitability and risk of projects where technology may quickly become obsolete.

The Net Present Value/payback Approach Is a Useful Approach When