CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

NPV and IRR methods can give different results for independent projects due to all of the following EXCEPT FOR ______.
A. differences in the timing of cash flows
B. differences in reinvestment rate assumptions
C. cost of capital for projects
Explanation: Differences in the scale of investments can be a factor too. The cost of capital does not affect project rankings. It does affect the decision to accept or reject projects, however.

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