Which of the Following Statements Regarding the Assumptions Underlying Discounted

question 18

Multiple Choice

Which of the following statements regarding the assumptions underlying discounted cash flow analysis is/are true?
i. All cash flows are treated as though they occur at year-end.
ii. Cash flows associated with the investment project are treated as if they are known with certainty.
iii. The discount rate is always the same as the average cost of capital.

• A) i
• B) i and ii
• C) ii
• D) All of the given answers

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