Page 258 - Microsoft Word - 00 ACCA F2 Prelims.docx

Chaptter 14

4.2 AAdvantagess and disaadvantagees of NPV

 Consideers the timee value of  Commplex

money
 Nott well undeerstood by
 Measurees absolutee nonn-financial managers
profitability
 Neeed the cost t of capital
 Uses cash flow

 Consideers the whoole life of
the projeect

 Should mmaximise sshareholdeer
wealth

252