Start learning →

What is a limitation of the NPV approach regarding non-financial matters?

AIt counts goodwill twice
BIt uses only accounting profit
CIt is purely financial
DIt overweights brand value
Answer & Solution
Correct answer: C. It is purely financial
NPV is a purely financial calculation and leaves out non-financial factors that may matter to a decision.
Practise this question with Quill — CA Inter →

Keep practising Profitability Index

Browse all Profitability Index questions for CA Inter, or explore more Financial Management topics.

Start a Profitability Index lesson →
Related questions