MichaelMcC9834 MichaelMcC9834
  • 15-08-2020
  • Business
contestada

The assumption that the cash flows from an investment project are reinvested at the company's discount rate applies to:

Respuesta :

andromache andromache
  • 16-08-2020

Answer:

Only the net present value method

Explanation:

The net present value is the lies between the initial amount and the present value of cash inflows after considering the discount factor

If the initial investment is more than the present value of all year cash inflows so it comes in negative due to which the project is not accepted else the project should be accepted

Therefore in the given case, it only applied to the net present value method

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