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    Finance Applications and Theory Study Set 2
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    Exam 13: Weighing Net Present Value and Other Capital Budgeting Criteria
  5. Question
    Explain the Differing Reinvestment Rate Assumptions of NPV and IRR
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Explain the Differing Reinvestment Rate Assumptions of NPV and IRR

Question 26

Question 26

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Explain the differing reinvestment rate assumptions of NPV and IRR.

Correct Answer:

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IRR implies that any cash inflows will b...

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