Which of the Following Is Not an Assumption in Performing

question 44

Multiple Choice

Which of the following is not an assumption in performing NPV calculations found in Chapter 11?

• A)The initial cash outflow takes place at the beginning of the period.
• B)The internal rate of return is zero.
• C)Subsequent cash inflows and outflows occur at the end of the relevant period.
• D)The mathematics of new present value calculations assume that firms reinvest future cash inflows in projects that yield a return that equals the cost of capital.
• E)All of the above are assumptions discussed in Chapter 11.

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Definitions:

Implementation Intentions

Mental rules reminding us to respond to a cue in the situation with a goal-directed behavior.

Exercise Habits

Regular patterns or routines of physical activity maintained over time for the purpose of improving or maintaining one's fitness or health.

Gender Differences

The distinctions in behaviors, preferences, roles, or biological attributes typically associated with being male or female.

Career

The pursuit of a professional life path or series of employment opportunities, often involving progression in a particular field or industry.