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SOPHIA FINANCE MILESTONE 4A:What is one disadvantage of NPV .......

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SOPHIA FINANCE MILESTONE 4A What is one disadvantage of NPV as a capital budget method? It can be misleading if inputs like cash flow turn out to be wrong. It is rarely used, so there is disagreement as to what an adequate NPV is. It cannot be used to compare investments with different upfront costs. It does not deliver an overall picture of the gain or loss of implementing a project.

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Strayer University
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FIN 215 (FIN215)










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