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 (the firm's cost of capital) .
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.
Correct Answer:
Verified
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