It Is the Difference in the Reinvestment Assumptions That Can

question 74

True/False

It is the difference in the reinvestment assumptions that can be significant in determining when to use the net present value or internal rate of return methods.

---

Definitions:

IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and tax law enforcement.

Business Days

Refers to the standard days in a week (excluding weekends and public holidays) considered as working days for conducting business.

Deposit

A sum of money placed in an account or given as security for a financial transaction or agreement.

Checking Account

A bank account that allows the holder to write checks, use electronic debit, and make deposits, meant for frequent transactions.