Question

1.What is the limitation of using the net present value for evaluating capital investment alternatives? a....

1.What is the limitation of using the net present value for evaluating capital investment alternatives?

a. Ignores the time value of money

b. Does not consider cash flows

c. Cannot be used to compare projects of different size

d. All of the above are limitations of the net present value method.

2.Which of the following is NOT part of the capital budgeting process?

a.Project identification

b.Project evaluation

c.Project monitoring

d.All of the above are parts of the capital budgeting process.
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