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  1. business
  2. accounting
  3. which of the following statements is correct? the

Which of the following statements is correct? The NPV method does not consider the inflation...

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Accounting

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Which of the following statements is correct? The NPV method does not consider the inflation premium The NPV method assumes that cash flows will be reinvested at the required rate of return while the IRR method assumes reinvestment at the IRR The NPV method assumes that cash flows will be reinvested at the risk-free rate while the IRR method assumes reinvestment at the IRR The IRR method does not consider all relevant cash flows, and particularly cash flows beyond the payback period A degree of operating leverage (DOL) equal to 15 times indicates that for every 1 percent change in sales there will be a 1.5 percent change in earnings per share (EPS) earnings per share (EPS) there will be a 1.5 percent change in sales sales there will be a 1.5 percent change in earnings before interest and taxes (EBIT) earnings before interest and taxes (EBIT) there will be a 1.5 percent change in earnings per share (EPS) interest there will be a 1.5 percent change in earnings before interest and taxes (EBIT)

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