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    Contemporary Financial Management Study Set 1
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    Exam 10: Capital Budgeting: Decision Criteria and Real Option Considerations
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    The Net Present Value Method Assumes That the Cash Flows
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The Net Present Value Method Assumes That the Cash Flows

Question 36

Question 36

Multiple Choice

The net present value method assumes that the cash flows over the life of the project are reinvested at


A) the computed internal rate of return
B) the risk-free rate
C) the market capitalization rate
D) the firm's cost of capital

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