Which of the following is correct about the assumptions of reinvestment rates? O a. The NPV and IRR both assume the IRR
Posted: Tue Jan 18, 2022 1:00 pm
Which of the following is correct about the assumptions of reinvestment rates? O a. The NPV and IRR both assume the IRR as the rate of reinvestment. b. The WACC is always used as the assumed rate of reinvestment. O c The NPV and IRR both assume the WACC as the rate of reinvestment O d. The NPV assumes reinvestment at the WACC, whereas the IRR assumes reinvestment at the IRR. O e. The NPV assumes reinvestment at the IRR, whereas the IRR assumes reinvestment at the WACC.