Which of the Following Assumptions Is Made in Order to Simplify

question 62

Multiple Choice

Which of the following assumptions is made in order to simplify the net present value method?

• A)All cash flows come at the end of the year.
• B)All cash flows are immediately reinvested at the best rate available at the time.
• C)All cash flows come at the beginning of the year.
• D)All cash flows are not reinvested.

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