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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Definitions:

Convention

A widely accepted way of doing something, based on established practices and procedures.

Decorative Value

The aesthetic appeal or beautifying aspects added by objects or elements to a space, product, or visual presentation.

Infographics

Images or diagrams that aim to simplify and clearly show intricate data, information, or understanding.

Sequential Relationships

Describes a series of connections or associations between events, actions, or items that follow a specific order.