Which of the following statements is CORRECT? a. The IRR method assumes that cash flows...
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Accounting
Which of the following statements is CORRECT?
a. The IRR method assumes that cash flows will be reinvested at the WACC, while the NPV method assumes reinvestment at the projects expected return.
b. The Payback Period method does not consider all relevant cash flows, particularly, cash flows beyond the payback period.
c. The Discounted Payback Period method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the risk-free rate.
d. The Profitability Index method assumes that cash flows will be reinvested at the risk-free rate, while the Modified IRR method assumes reinvestment at the IRR.
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