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AFP CTP Question # 119 Topic 12 Discussion

CTP Exam Topic 12 Question 119 Discussion:
Question #: 119
Topic #: 12

Which of the following is NOT a drawback to using ROI as a performance measure?


A.

It may be misleading when cash flows are not evenly distributed over time.


B.

It does not consider the profit generated by a project.


C.

It does not include a charge for cost of capital.


D.

It may lead to rejection of a positive NPV project.


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