The NPV Method's Assumption That Cash Inflows Are Reinvested at the Cost

question 56

True/False

The NPV method's assumption that cash inflows are reinvested at the cost of capital is generally more reasonable than the IRR's assumption that cash flows are reinvested at the IRR.This is an important reason why the NPV method is generally preferred over the IRR method.

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The principle that judges should limit their own power to strike down laws unless they clearly violate the Constitution.

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