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Which of the below is a potential problem when using the Rate of Return method to evaluate project cash flows? a . The Rate of
Which of the below is a potential problem when using the Rate of Return method to evaluate project cash flows?
a The Rate of Return calculation makes the assumption that the cash flows received during the life of the project are reinvested
at a rate different than the project's computed Rate of Return.
b The Rate of Return calculation tends to overstate the project's MARR.
c The Rate of Return calculation tends to understate the project's MARR.
d The Rate of Return calculation makes the assumption that the cash flows received during the life of the project are reinvested
at the project's computed Rate of Return.
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