Which of the following statements is true regarding capital budgeting methods?
a. The Fisher rate can never exceed a company's cost of capital.
b. The internal rate of return measure used for capital project evaluation has more conservative assumptions than the net present value method, especially for projects that generate a positive net present value.
c. The net present value method of project evaluation will always provide the same ranking of projects as the profitability index method.
d. The net present value method assumes that all cash inflows can be reinvested at the project's cost of capital.
D
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Fill in the blank(s) with the appropriate word(s).
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