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Problem 1: Which of the following is true when using the net present value method to evaluate investments?
a. An assumption of the net present value method is that cash flows can be immediately reinvested at a rate of return equal to the discount rate used to evaluate the project.b. If a project requires working capital, the working capital is ordinarily included as a cash inflow at the beginning of the project and a cash outflow as the end of a project.c. Depreciation is ordinarily included as a cash outflow in each year of a project's life.d. The discount rate is the maximum rate of return that the project must earn to be considered acceptab
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