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Which of the following is a disadvantage of using the net present value method of...

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Accounting

Which of the following is a disadvantage of using the net present value method of evaluating an investment proposal?
a. It considers the cash flows of the investment.
b. It considers the time value of money.
c. It can rank projects with equal lives, using the present value index.
d. It assumes cash flows can be reinvested at the minimum desired rate of return.
The present value index is computed as
a. total present value of net cash flow divided by amount to be invested
b. cost divided by amount to be invested
c. total future value of net cash flows divided by amount to be invested
d. None of these choices are correct.
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