Multiple Choice
Which statement is true?
A) The Internal Rate of Return method assumes that cash reinvested in the course of the life of the project earns at the same rate as the project.
B) The Net Present Value method assumes that the reinvestment rate is at the cost of capital.
C) Both the Internal Rate of Return and the Net Present Value methods assume that the reinvestment rate is at the cost of capital.
D) Both A and B.
Correct Answer:
Verified
Correct Answer:
Verified
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