Author Question: On a purely theoretical basis, NPV is the better approach to capital budgeting than IRR because NPV ... (Read 107 times)

mspears3 · **on:** Jul 10, 2018

On a purely theoretical basis, NPV is the better approach to capital budgeting than IRR because NPV implicitly assumes that any intermediate cash inflows generated by an investment are reinvested at the firm's cost of capital.

Indicate whether the statement is true or false

Question 2

Which of the following is an example of noncash charges?

A) depreciation
B) accruals
C) interest expense
D) dividends paid