Question: 9 . Chapter MC , Section . 1 0 , Problem 0 4 2 Which of the following statements is CORRECT? a . The NPV
Chapter MC Section Problem Which of the following statements is CORRECT? a The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the IRR. b The NPV method assumes that cash flows will be reinvested at the riskfree rate, while the IRR method assumes reinvestment at the IRR. c The NPV method does not consider all relevant cash flows, particularly cash flows beyond the payback period. d The IRR method does not consider all relevant cash flows, particularly cash flows beyond the payback period. e The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the riskfree rate.
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