On a purely theoretical basis, NPV is a better approach when selecting among two mutually exclusive ...

Author Question: On a purely theoretical basis, NPV is a better approach when selecting among two mutually exclusive ... (Read 82 times)

future617RT

Hero Member
Posts: 543

on: Jul 10, 2018

On a purely theoretical basis, NPV is a better approach when selecting among two mutually exclusive projects.

Indicate whether the statement is true or false

Question 2

The internal rate of return assumes that a project's intermediate cash inflows are reinvested at a rate equal to the firm's cost of capital.

Indicate whether the statement is true or false

Jadwiga9

Sr. Member
Posts: 316

Reply #1 on: Jul 10, 2018

Answer to Question 1

TRUE

Answer to Question 2

FALSE

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