Which of the following is a not correct?

a. The yield to maturity (YTM) and the internal rate of return (IRR) are the same

b. The YTM and the IRR both suffer from the reinvestment rate assumption.

c. The YTM suffers from the reinvestment problem when market interest rates change.

d. The IRR suffers from the reinvestment problem when the general level of interest rates change.

e. The realized compound yield corrects YTM; the modified internal rate of return corrects the IRR.

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Which of the following statements is correct?

a. The NPV method assumes that cash flows will be reinvested at the required rate of return while the IRR method assumes reinvestment at the IRR.

b. The NPV method assumes that cash flows will be reinvested at the riskfree rate while the IRR method assumes reinvestment at the IRR.

c. The NPV method assumes that cash flows will be reinvested at the required rate of return while the IRR method assumes reinvestment at the riskfree rate.

d. The NPV method does not consider the inflation premium.

e. The IRR method does not consider all relevant cash flows, and particularly cash flows beyond the payback period.

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If the calculated NPV is negative, then which of the following must be true? The discount rate used is:

a. Equal to the internal rate of return.

b. Greater than the internal rate of return.

c. Less than the internal rate of return.

d. Greater than the reciprocal of the payback period.

e. Less than the reciprocal of the payback period.