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The net present value method of capital budgeting assumes that cash flows are reinvested at?

a- The discount rate used in the analysis.

b- The cost of debt.

c- The rate of return of the project.

d- No rate as they are not reinvested.

Cash Flow Forecasting Capital Projects Strategic Financial Planning
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Question added by Ezzidin Ibrahim , Financial Controller , Karim Food Industries
Date Posted: 2015/03/04
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ABHIJIT GUPTA
by ABHIJIT GUPTA , Senior Manager Finance (Finance Head of two units) , Meydan Group L.L.C.

Discount rate used is weighted average cost of debt,

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