The Internal Rate of Return Method Assumes That the Cash

question 99

Multiple Choice

The internal rate of return method assumes that the cash flows over the life of the project are reinvested at:

• A)the risk-free rate
• B)the firm's cost of capital
• C)the computed internal rate of return
• D)the market capitalization rate

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Definitions:

Electromyograph (EMG)

A diagnostic tool used to measure the electrical activity produced by skeletal muscles.

Electrocardiograph (EKG)

A medical test that measures the electrical activity of the heart to identify various heart conditions.

Electro-Oculograph (EOG)

A method of measuring eye movements by recording the electrical activity generated by the movement of the eye.

REM Rebound

The increased amount of REM sleep that occurs after REM deprivation.