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    Question

    NPV assumes reinvestment of the cash flows at:

    A Required Rate of Return Correct Answer Incorrect Answer
    B Internal Rate of Return Correct Answer Incorrect Answer
    C Market Interest Rate Correct Answer Incorrect Answer
    D Repo Rate Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Answer: NPV assumes reinvestment of the cash flows at the Opportunity cost of capital which also is known as the required rate of return.

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