Which of the Following Is True of Discounted Cash Flow

question 63

Multiple Choice

Which of the following is true of discounted cash flow methods like NPV and IRR?

• A)They use simple interest calculations.
• B)They assume that cash flows will be reinvested when received.
• C)They focus on the payback period.
• D)They comply with the requirements of GAAP.

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Verbs

Words used to describe an action, occurrence, or state of being.

Camouflaged Verbs

Verbs that are unnecessarily turned into nouns or adjectives, often making sentences more complicated and harder to understand.

Application

A software program designed to carry out a specific set of tasks or to solve particular problems.

Passive Voice

A grammatical voice in which the subject of the sentence is the recipient of an action rather than the doer, typically involving a form of the verb "to be" and a past participle (e.g., "The letter was written").