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Which of the Following Is Not an Assumption in Performing

Question 56

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Which of the following is not an assumption in performing NPV calculations found in Chapter 11? a. The initial cash outflow takes place at the beginning of the period.
B) The internal rate of return is zero.
C) Subsequent cash inflows and outflows occur at the end of the relevant period.
D) The mathematics of new present value calculations assume that firms reinvest future cash inflows in projects that yield a return that equals the cost of capital.
E) All of the above are assumptions discussed in Chapter 11.

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