The Net Present Value (Or NPV)criteria for Capital Budgeting Decisions

Multiple Choice

The Net Present Value (or NPV) criteria for capital budgeting decisions assumes that expected future cash flows are reinvested at ________,and the Internal Rate of Return (or IRR) criteria assumes that expected future cash flows are reinvested at ________.

A) the firm's discount rate; the internal rate of return
B) the internal rate of return; the internal rate of return
C) the internal rate of return; the firm's discount rate
D) Neither criteria assumes reinvestment of future cash flows.