The Underlying Cause of Conflicts in Ranking for Projects by Internal

question 53

Multiple Choice

The underlying cause of conflicts in ranking for projects by internal rate of return and net present value methods is

• A) the reinvestment rate assumption regarding intermediate cash flows.
• B) that neither method explicitly considers the time value of money.
• C) the assumption made by the NPV method that intermediate cash flows are reinvested at the internal rate of return.
• D) the assumption made by the IRR method that intermediate cash flows are reinvested at the cost of capital.

---

Definitions:

Copyright

The right of ownership of an original literary or artistic work and the control over the right to copy it.

Claim Copyright

The act of declaring ownership over an original work to protect it from unauthorized use under copyright law.

Photograph

An image produced through the capture of light on a light-sensitive material or an electronic sensor.

Writing

The act or process of composing text or content for various purposes, including communication, documentation, and records.