Economics · Project Evaluation
Consider the following statements regarding the Net Present Value (NPV) criterion: (i) When used for project appraisal, the acceptability of a project is based purely on economic efficiency. (ii) It does not address the issue of income distribution. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both (i) and (ii) are incorrect
- 2Both (i) and (ii) are correct✓
- 3Only (ii) is correct
- 4Only (i) is correct
Correct answer
Both (i) and (ii) are correct
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