Business, 01.07.2020 16:01 janahiac09
Identify the simplifying assumptions usually made in net present value analysis. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
A. All cash flows other than the initial investment occur at the end of periods. unchecked
B. All cash flows generated by the investment project are immediately reinvested at a rate of return greater than the discount rate. unchecked
C. All cash flows generated by the investment project are immediately reinvested at a rate of return equal to the discount rate. unchecked
D. All cash flows occur at the beginning of the periods. unchecked
E. The time value of money is ignored when evaluating investment proposals under the net present value analysis.
Answers: 3
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