Which Statement Is True

question 68

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:

Ancient

Pertaining to a period of history that is very old or from the distant past, typically before the fall of the Western Roman Empire in AD 476.

Modern State

An organized political entity with a defined territory, government, and the capability to enter into relations with other states.

Social Stratification

describes the hierarchical arrangement of individuals in society based on wealth, power, race, education, ethnicity, gender, and other factors.