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

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.

AFP CTP Summary

  • Vendor: AFP
  • Product: CTP
  • Update on: Oct 21, 2025
  • Questions: 1076
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