An Assumption Implicit in the Net Present Value Technique Is

question 136

True/False

An assumption implicit in the net present value technique is that all cash flows are reinvested at the cost of capital.

---

Definitions:

Encoding

The process of converting information into a form that can be stored in memory.

Encoding

The process of converting information into a form that allows it to be stored in our memory.

Cognitive Processes

Mental activities such as thinking, understanding, learning, and remembering.

Unattended Information

Information that is present in the environment but is not the focus of one's attention and hence is processed minimally or not at all.