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:

Real Property

Real estate comprising the ground and any structures or natural features permanently affixed, such as homes and foliage.

Properly Executed Deed

A legal document that has been completed correctly, meeting all necessary formalities to transfer ownership of property.

Oral Declaration

A statement or announcement made verbally and not in written form, which can be legally binding under certain conditions.

Real Property Title

Legal ownership and right to the use of land and the permanent structures attached to it.