The Net Present Value (NPV)method Assumes That Cash Flows Are

question 84

Multiple Choice

The net present value (NPV) method assumes that cash flows are reinvested at the:

• A)IRR.
• B)cost of capital.
• C)average rate it pays investors.
• D)Both b & c

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Definitions:

Assignment

The transfer of rights, property, or duties from one party to another.

Delegation

The act of assigning responsibility or authority to another person to carry out specific duties.

Third-Party Beneficiary

An individual or entity that, while not a direct party to a contract, is intended by the contracting parties to benefit from it.

Novation

The act of replacing an existing contract with a new one, involving a different obligation or party.