The Assumption That the Cash Flows from an Investment Project

question 350

Multiple Choice

The assumption that the cash flows from an investment project are reinvested at the company's discount rate applies to:

• A) both the internal rate of return and the net present value methods.
• B) only the internal rate of return method.
• C) only the net present value method.
• D) neither the internal rate of return nor net present value methods.

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