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 the above

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 future cash flows might be uncertain or subject to change due to technological shifts.

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