The underlying cause of conflicts in ranking for projects by internal rate of return and net present value methods is ________
A) the reinvestment rate assumption regarding intermediate cash flows
B) that neither method explicitly considers the time value of money
C) the assumption made by the IRR method that cash inflows are spread equally throughout the timeline
D) that NPV approach favors small projects with high returns
A
You might also like to view...
The two primary personal financial statements include the personal balance sheet and a credit card payoff statement.
a. true b. false
Albert received a life estate in property, but the property had a mortgage against it. Which statement is TRUE regarding this situation?
A. Mortgage payments are the responsibility of the remainder interest holder. B. The mortgage nullifies the life estate. C. The life tenant pays the interest, but the remainder interest pays the principal. D. The mortgage payment is split evenly between life tenant and remainder holder.