Question 34 3 points Which of the following statements is CORRECT? One defect of

Question

Question 34 3 points Which of the following statements is CORRECT? One defect of the IRR method is that it does not take account of cash flows over a project's full life. One defect of the IRR method is that it does not take account of the time value of money. One defect of the IRR method is that it does not take account of the cost of debt capital 0 One defect of the RR method is that it values a dollar received today the same as a dollar that will not be rece e un sometime in the future O One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.

Explanation / Answer

22)Correct option is "E" -

one of the defect IRR has that it assumes cash flow will be reinvested at IRR itself which is not valid.because it is not necessary that the project in which firm invest will generate a same rate of return .

23)correctoption is"C" - there is no change

since decrease in accounts receivable will be compensated by increase in cash making the net working capital unchanged.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.