alleryStart learning →Why is NPV said to have the benefit of being additive?
AIt ignores cash flow timing
BNPV never changes with rate
CNPVs of projects can be added
DProject costs always sum to one
Answer & Solution
Correct answer: C. NPVs of projects can be added
Because NPVs of different projects can be summed, a firm can find the combination creating the most wealth.
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