Why is NPV preferred over Payback Period?
ZTBL OG III Past Papers and Syllabus / All — Multiple-choice practice
پے بیک پیریڈ پر این پی وی کو ترجیح کیوں دی جاتی ہے؟
- A. Considers time value of money
- B. More widely used
- C. Easier to calculate
- D. Requires less data
Correct answer
Considers time value of money
Explanation
Explanation NPV is preferred over Payback Period. Because it considers the time value of money. It recognizing that a dollar today is worth more than a dollar in the future.
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