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Net Present Value (NPV) has several limitations when evaluating alternative investment proposals. Firstly, it relies heavily on projected cash flows, which can be uncertain and difficult to estimate accurately, leading to potential biases in decision-making. Secondly, NPV does not account for the flexibility or strategic options that may arise during the investment's life, such as the ability to adapt or abandon projects. Lastly, it assumes a constant discount rate, which may not reflect changes in risk or market conditions over time.

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propo-m/apap


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