Which of the Following Is True About the Net Present

question 78

Multiple Choice

Which of the following is true about the Net Present Value method?

• A) The NPV does not utilize time value of money concepts.
• B) The NPV assumes that all cash flows are reinvested at the firm's discount rate.
• C) The NPV allows projects to be ranked by rate of return.
• D) The NPV is a rate of return that is acceptable to the firm.

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