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a. 6. Which of the following statements is CORRECT? (5 points) The NPV method assumes that cash flows will be reinvested at the risk-free rate,
a. 6. Which of the following statements is CORRECT? (5 points) The NPV method assumes that cash flows will be reinvested at the risk-free rate, while the IRR method assumes reinvestment at the IRR. b. The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. c. The MIRR method assumes that cash flows are reinvested at the crossover rate. d. The higher the WACC in calculation of NPV, the lower the calculated NPV will be. >
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