Multiple Choice
Which of the following statements is CORRECT?
A) The NPV method assumes that cash flows will be reinvested at the WACC,while the IRR method assumes reinvestment at the IRR.
B) The NPV method assumes that cash flows will be reinvested at the risk-free rate,while the IRR method assumes reinvestment at the IRR.
C) The NPV method assumes that cash flows will be reinvested at the WACC,while the IRR method assumes reinvestment at the risk-free rate.
D) The NPV method does not consider all relevant cash flows,particularly cash flows beyond the payback period.
E) The IRR method does not consider all relevant cash flows,particularly cash flows beyond the payback period.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: When evaluating mutually exclusive projects, the modified
Q53: Projects C and D are mutually exclusive
Q55: Projects S and L both have normal
Q56: Which of the following statements is CORRECT?<br>A)
Q57: Which of the following statements is CORRECT?<br>A)
Q59: Suppose a firm relies exclusively on the
Q60: McCall Manufacturing has a WACC of 10%.The
Q61: Conflicts between two mutually exclusive projects occasionally
Q62: Which of the following statements is CORRECT?
Q63: Yonan Inc.is considering Projects S and