The re-investment assumption in the case of IRR technique assumes :

CS Executive · Financial and Strategic Management · PYQS · June 2021
The re-investment assumption in the case of IRR technique assumes :
(A) Cash flows can be re-invested at the project IRR
(B) Cash flows can be re-invested at the weighted cost of capital
(C) Cash flows can be re-invested at the marginal cost of capital
(D) None of the above

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Capital Budgeting

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic