Which of the following statements is CORRECT?

Select one:

a. Neither NPV criteria nor IRR criteria assume reinvestment of future cash flows.

b. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the IRR. IRR criteria assume that expected future cash flows are reinvested at IRR.

c. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the IRR. IRR criteria assume that expected future cash flows are reinvested at the company discount rate.

d. NPV criteria for capital budgeting decisions assume that expected future cash flows are reinvested at the company discount rate. IRR criteria assume that expected future cash flows are reinvested at IRR.

Clear my choice