Which Statement Is True

question 21

Multiple Choice

Which statement is true?

• A)The Internal Rate of Return method assumes that cash reinvested in the course of the life of the project earns at the same rate as the project.
• B)The Net Present Value method assumes that the reinvestment rate is at the cost of capital.
• C)Both the Internal Rate of Return and the Net Present Value methods assume that the reinvestment rate is at the cost of capital.
• D)Both A and B.

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Definitions:

Make An Argument

Refers to the process of giving one or more reasons in support of a claim.

Argument Analysis

The process of evaluating an argument by examining its structure, validity, and logical coherence.

Mapping

The process of representing or outlining the relationship between elements in a space or concept.

Implicit Assumption

An underlying premise that is taken for granted or understood without being explicitly stated.