Question

Identify the simplifying assumptions usually made in net present value analysis. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) All cash flows other than the initial investment occur at the end of periods. unanswered All cash flows generated by the inv

Answer 1

Answer:

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Explanation:

The net present value method is based on two assumptions. These are:

1.The cash generated by a project is immediately reinvested to generate a return at a rate that is equal to the discount rate used in present value analysis.

2. The inflow and outflow of cash other than initial investment occur at the end of each period.