QUESTION 5 The internal rate of return can never be equal to the external rate of return. O True O False QUESTION 6 A method that takes into account the interest rate external to a project at which net cash flows generated by a project over its life can be reinvested. QUESTION 7 It reflects the capital cost of an asset. QUESTION 8 Is the interest rate which is earned on unrecovered investments in a project such that uncovered investment at the end of the life of a project is zero.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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QUESTION 5
The internal rate of return can never be equal to the external rate of return.
O True
O False
QUESTION 6
A method that takes into account the interest rate external to a project at which net cash flows generated by a project over its life can be reinvested.
QUESTION 7
It reflects the capital cost of an asset.
QUESTION 8
Is the interest rate which is earned on unrecovered investments in a project such that uncovered investment at the end of the life of a project is zero.
Transcribed Image Text:QUESTION 5 The internal rate of return can never be equal to the external rate of return. O True O False QUESTION 6 A method that takes into account the interest rate external to a project at which net cash flows generated by a project over its life can be reinvested. QUESTION 7 It reflects the capital cost of an asset. QUESTION 8 Is the interest rate which is earned on unrecovered investments in a project such that uncovered investment at the end of the life of a project is zero.
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