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      Question

      In case of mutually exclusive projects having uneven

      cash flows and when the result of NPV and IRR are conflicting; NPV is a better method because:
      A NPV considers time value of money Correct Answer Incorrect Answer
      B NPV considers all cash flows Correct Answer Incorrect Answer
      C NPV assumes reinvestment at the discounting rate, which is more realistic Correct Answer Incorrect Answer
      D NPV measures profitability Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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