Under the Net Present Value (NPV)method,cash Flows Are Assumed to Be

question 7

Multiple Choice

Under the net present value (NPV) method,cash flows are assumed to be reinvested at:

• A)the company's discount rate.
• B)the internal rate of return.
• C)an average of the discount rate and the internal rate of return.
• D)the prime lending rate.
• E)None of the answer choices is correct.

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