The Net Present Value (NPV) Method Is Considered to Be

question 59

Multiple Choice

The net present value (NPV) method is considered to be a better method of evaluation than the internal rate of return (IRR) method because the NPV method

• A) uses time value of money while IRR does not.
• B) is a more liberal method of analysis.
• C) assumes that cash flows can be reinvested at the firm's more conservative cost of capital.
• D) None of these options are true.

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