Advantages of NPV capital budgeting method

Advantages of NPV capital budgeting method

Advantages of NPV capital budgeting method:

A. Incorporates time value of money

B. Focuses on total incremental shareholder wealth increase

C. No arbitrary preset required return rate needed

D. Consider all project lifetime cash flows

Answer: ABD

Rationale: NPV needs preset WACC as discount rate, C wrong.