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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Definitions:

Externalizing Problems

Behaviors that are directed outwardly, often resulting in conflicts with others or behavioral issues.

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or psychological.

Delinquency

Typically refers to minor criminal behavior, often by young people, or a failure to follow laws and regulations.

Bulimia Nervosa

An eating disorder that involves cycles of binge eating followed by self-induced vomiting.