In Capital Budgeting Analyses, It Is Possible That NPV and IRR

question 28

True/False

In capital budgeting analyses, it is possible that NPV and IRR will both involve an assumption of reinvestment of the project's cash flows at the same rate.

---

Definitions:

Price Ratio

The proportional relationship between two or more prices, indicating the relative cost of goods or services.

Income

The amount of money or equivalent value received by an individual or entity in return for labor or services provided, from investments, or from other sources.

Net Demand

The difference between the total demand for a product or service and the total supply of it in the market.

Endowment

In economics, the total resources available to an individual or entity, including assets, income, and inherited resources.