CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

When considering capital projects, which of the following statements is most accurate? Compared to the NPV method, the IRR method ______
A. has the more appropriate reinvestment rate assumption.
B. can result in multiple values.
C. uses more accurate estimates of the project's cash flows.
Explanation: If the cash flows of the project are nonconventional, the IRR method can result in multiple IRRs.

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