What is the internal rate of return's assumption about how cash flows are reinvested?
A) They are reinvested at the firm's discount rate.
B) They are reinvested at the required rate of return.
C) They are only reinvested at the end of the project.
D) They are reinvested at the project's internal rate of return.
Question 2
The objective of managing cash inflows is to decrease the float while the objective of managing cash
outflows is to increase the float.
Indicate whether the statement is true or false
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Determine the nominal annual rate of interest of the following ordinary general annuity.