A Customary Assumption in Capital Budgeting Analysis Is That

question 90

Multiple Choice

A customary assumption in capital budgeting analysis is that:

• A) the desired rate of return includes the effects of compounding.
• B) the cash inflows generated by the investment are not reinvestment.
• C) annual cash flows occur at the beginning of each period.
• D) the time value of money is ignored.

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