The Net Present Value Method Is a More Conservative Technique

question 33

Multiple Choice

The net present value method is a more conservative technique for selecting investment projects than the internal rate of return method because the NPV method

• A)assumes that cash flows are reinvested at the project's internal rate of return.
• B)concentrates on the liquidity aspects of investment projects.
• C)assumes that cash flows are reinvested at the firm's weighted average cost of capital.
• D)None of these options

---

Definitions:

Paraphilic Sadomasochism

A form of paraphilia involving the giving or receiving of pleasure from acts involving the infliction or reception of pain or humiliation.

Klismaphilia

A sexual fetish where individuals derive pleasure from the introduction of liquids into the rectum and colon via the anus.

Leash and Collar

Devices commonly used for controlling or leading animals, but can have other connotations in different contexts.

Urophilia

A paraphilia in which a person gets sexual pleasure from contact with urine.