0
Advantage and disadvantage of NPV what is the advantage and disadvantage of Net Present Value Method?
Wiki User
∙ 16y ago
Advantages: a. It will give the correct decision advice assuming a perfect capital market. It will also give correct ranking for mutually exclusive projects. b. NPV gives an absolute value. c. NPV allows for the time value fo the cash flows. Disadvantages: a. It is very difficult to identify the correct discount rate. b. NPV as method of investment appraisal requires the decision criteria to be specified before the appraisal can be undertaken.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What is the advantage of using 2's complement method for substraction?
it is subtraction not substraction
What is the advantage of using the method of substitution rather than using a graph?
Accuracy.
What are the advantages and disadvantages of historical method of research?
An advantage is that it enables researchers to learn about events that happened in the passed or long ago and also provides a way to study trends
What are the advantages of the Euler's modified method over Euler's method?
The advantage of the modified method is the improved accuracy - the error is of order h3 as opposed to h2, where h is the step size. Since the step size is required to be small for the methods to give fair approximations (h
What are the Advantages of midpoint circle drawing algorithm?
Disadvantage: -time consumption is high -the distance between the pixels is not equal so we wont get smooth circle Advantage: The midpoint method for deriving efficient scan-conversion algorithms to draw geometric curves on raster displays in described. The method is general and is used to transform the nonparametric equation f(x,y) = 0, which describes the curve, into an algorithms that draws the curve. Floating point arithmetic and time-consuming
What are the advantage and disadvantage of sampling techniques?
what are the advantage of and disadvantage of sampling method
Advantages and disadvantage of project method?
Advantage and disadvantage of project method
What is the advantage and disadvantage oven drying method?
The advantage of oven drying method is that all the trays get equal heat and therefore the drying is uniform. The disadvantage is that the dehydrator has limited capacity.
Advantage and disadvantage of collective opinion method?
The method is simple and easy to be use
What are advantage and disadvantage of shaduf system?
DISADVANTAGE : 1)- Irrigates less area . ADVANTAGE : 1)- Not much expensive to use this method .
Merits and demerits of net present value?
Advantages:With the NPV method, the advantage is that it is a direct measure of the dollar contribution to the stockholders.With the IRR method, the advantage is that it shows the return on the original money invested.Disadvantages:With the NPV method, the disadvantage is that the project size is not measured.With the IRR method, the disadvantage is that, at times, it can give you conflicting answers when compared to NPV for mutually exclusive project.BY SHARANYA NV
What is the advantage and disadvantage of error detection method in data communication?
what are the merits and demerits of data communication
Advantage disadvantage of questioning and answering method?
Type your answer here... advantages of questioning a user about diagnostic procedures
What are the advantages and disadvantages of the inductive method?
An advantage of the inductive method is that it looks at nature to provide information. A disadvantage is that is sometimes goes against human logic.
What is the advantage and disadvantage of discounted payback method?
we only know the disadvantages: The cash flows beyond the payback period are ignored..
Advantages and disadvantages of documentary credit as compared to other methods of trade finance?
disadvantage of documentary credit payment method of international trade advantage and disavantage of advance payment method of international trade advantage and disavantage of bills of collection payment method of international trade
What are the advantages and disadvantages of Registration Method?
Advantage is that people will be see you as you become the member and anybody can access you anywhere in the world and the disadvantage is that people can hack your info.
