The Net Present Value (or NPV) criteria for capital budgeting decisions assumes that expected
future cash flows are reinvested at ________,
and the Internal Rate of Return (or IRR) criteria
assumes that expected future cash flows are reinvested at ________.
A) the internal rate of return; the internal rate of return
B) the internal rate of return; the firm's discount rate
C) the firm's discount rate; the internal rate of return
D) Neither criteria assumes reinvestment of future cash flows.
C
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