Capital Budgeting Introduction
20. In capital budgeting, a firm's cost of capital is frequently used as the. a. internal rate of return. b. accounting rate of return. c. discount rate. d. profitability index. ANS: C DIF: Easy OBJ: 14-2. 21. The net present value method assumes that all cash inflows can be immediately reinvested at the. a. cost of capital. b. discount rate. c. ................
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