Theoretically,the NPV Is the Most Appropriate Method to Determine the Acceptability

Theoretically,the NPV is the most appropriate method to determine the acceptability of a project.A false sense of security can overcome the decision-maker when the procedure is applied properly but the positive NPV results are accepted blindly.Sensitivity and scenario analysis aid in the process by:

A) providing assurance that the most appropriate discount rate is being applied.
B) ensuring all estimated values are accurate.
C) ensuring the NPV value was calculated correctly.
D) providing information on a number of potential outcomes.
E) guaranteeing the NPV will be achieved.

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