Which of the Following Statements Is Correct

question 104

Multiple Choice

Which of the following statements is correct?

• A) The NPV method assumes that cash flows will be reinvested at the required rate of return 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 required rate of return while the IRR method assumes reinvestment at the risk-free rate.
• D) The NPV method does not consider the inflation premium.
• E) The IRR method does not consider all relevant cash flows,and particularly cash flows beyond the payback period.

---

Definitions:

Group-level Characteristics

Traits or features that are shared by members of a group, influencing the group's behavior, dynamics, and outcomes.

Individual Characteristics

Unique attributes, traits, and behaviors that differentiate one person from another.

Effective Counselors

These are professionals in counseling who demonstrate skills and competencies that effectively address the needs of their clients.

Intellectual Abilities

The capacity to perform mental activities such as reasoning, planning, problem-solving, abstract thinking, comprehending complex ideas, learning quickly, and learning from experience.