4 The net present value method of capital budgeting assumes that cash flows are reinvested at what rate? Select one: a. The internal rate of return on the project. b. A zero rate of return. c. The discount rate used in the analysis. d. The rate of return on the company's debt.

4 The net present value method of capital budgeting assumes that cash flows are reinvested at what rate? Select one: a. The internal rate of return on the project. b. A zero rate of return. c. The discount rate used in the analysis. d. The rate of return on the company's debt.

Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 6DQ

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Question

The net present value method of capital budgeting assumes that cash flows are reinvested at what rate?

Select one:

a. The internal rate of return on the project.

b. A zero rate of return.

c. The discount rate used in the analysis.

d. The rate of return on the company's debt.

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