Reinvestment Rate
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The Net Present Value Method is a more conservative technique for selecting,
A) assumes that cash flows are reinvested at the project's internal rate of return,
B) concentrates on the liquidity aspects of investment projects
C) assumes that cash flows are reinvested at the firm's weighted average cost of capital, D)none of the above
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Solution Summary
The solution explains the reinvestment rate assumption in the NPV method
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