Which of the Following Statements Is CORRECT

question 58

Multiple Choice

Which of the following statements is CORRECT?

• A) The NPV method assumes that cash flows will be reinvested at the WACC,while the IRR method assumes reinvestment at the IRR.
• B) The NPV method assumes that cash flows will be reinvested at the risk-free rate,while the IRR method assumes reinvestment at the IRR.
• C) The NPV method assumes that cash flows will be reinvested at the WACC,while the IRR method assumes reinvestment at the risk-free rate.
• D) The NPV method does not consider all relevant cash flows,particularly cash flows beyond the payback period.
• E) The IRR method does not consider all relevant cash flows,particularly cash flows beyond the payback period.

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Definitions:

Extranet

An extranet is a private network that allows controlled access to partners, vendors, and suppliers or an authorized set of users outside the company to access specific parts of an organization's information or operations.

Intranet

A private network accessible only to an organization's staff, often containing company information and tools for collaboration and communication.

Internet-Based Technology

Technology that relies on the Internet for communication, data transfer, and accessing, creating, or sharing content and services.

Information- And Communication-Based

Pertains to processes or technologies centered around the creation, storage, exchange, and use of information through electronic communication systems.