Which Statement Is True

question 13

Multiple Choice

Which statement is true?

• A) The internal rate of return method assumes that cash re-invested 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 re-investment rate is at the cost of capital.
• C) Both the internal rate of return and the net present value methods assume that the re-investment rate is at the cost of capital.
• D) A and B are both true.

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Definitions:

Obsessive-Compulsiveness

Refers to a psychological condition characterized by intrusive thoughts (obsessions) and repetitive behaviors (compulsions) aimed at reducing anxiety.

Dispositional Contempt

An attitude or feeling of disdain or scorn towards others, typically viewed as a stable personality trait.

Deal-Breakers

Factors or behaviors that, once present, can terminate a relationship or negotiation because one party finds them unacceptable.

Emotionally Unavailable

An inability or unwillingness to share emotions or emotionally engage with others.