Which statement is true?
A) The internal rate of return method assumes that cash re-invested in the course of the life of the project earns at the same rate as the project.
B) The net present value method assumes that the re-investment rate is at the cost of capital.
C) Both the internal rate of return and the net present value methods assume that the re-investment rate is at the cost of capital.
D) A and B are both true.
Correct Answer:
Verified
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A)
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