Page 224 - BA2 Integrated Workbook - Student 2017

Chapter 14

4.4 Advantages and disadvantages of NPV

 Considers the time value of  Complex
money
 Not well understood by
 Measures absolute non-financial managers
profitability
 Need the cost of capital
 Uses cash flow

 Considers the whole life of
the project

 Should maximise shareholder
wealth

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