The Net Present Value Method Is Considered to Be a Better

question 102

Multiple Choice

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

• A)assumes cash flows are reinvested at the internal rate of return.
• 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

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