Which of the Following Statements Is CORRECT

question 1

Multiple Choice

Which of the following statements is CORRECT?

• A) The NPV method assumes that cash flows will be reinvested at the risk-free rate, while the IRR method assumes reinvestment at the IRR.
• B) The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the risk-free rate.
• C) The NPV method does not consider all relevant cash flows, particularly cash flows beyond the payback period.
• D) The IRR method does not consider all relevant cash flows, particularly cash flows beyond the payback period.
• E) The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR.

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Definitions:

Leadership and Management

Refers to the roles and functions in guiding and controlling groups, organizations, or institutions towards achieving set objectives.

Leader Effectiveness

The measure of a leader's ability to achieve desired results, influence followers, and meet organizational goals.

Group Theory

A mathematical framework for studying the algebraic structure of groups, which are sets equipped with an operation that combines any two of its elements to form a third element in a way that satisfies certain conditions.

Relationships

Connections or associations between individuals or entities based on social, emotional, or professional ties.