Which of the following is true of discounted cash flow methods like NPV and IRR?

Name: Which of the following is true of discounted cash flow methods like NPV and IRR?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discounted cash flow methods like NPV and IRR assume that cash flows will be reinvested when received, leading to a more accurate valuation of the investment. They do not use simple interest calculations, do not focus on the payback period, and do not necessarily comply with the requirements of GAAP.

Which of the Following Is True of Discounted Cash Flow