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Which of the following statements is INCORRECT? Select one: O a. NPV method assumes reinvestment of intermediate cash flows at the cost of capital, while
Which of the following statements is INCORRECT? Select one: O a. NPV method assumes reinvestment of intermediate cash flows at the cost of capital, while IRR method assumes reinvestment of intermediate cash flows at IRR. O b. Two projects that have the same cost and the same expected cash flows will have the same NPV. O c Profitability index is the ratio of the present value of the future cash flows to the initial investment. O d. Main disadvantage of the NPV method is the need for detailed, long-term forecasts of cash flows generated by prospective projects
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