When using the Net Present Value model,which of the following assumptions is/are used?
A) We assume the predicted cash inflows and outflows are certain to occur at the times specified.
B) We assume perfect capital markets.
C) The Net Present Value model meets the cost-benefit criterion.
D) A and B

Question

Quizplus · Accepted Answer

The Net Present Value model assumes both A and B. It assumes that the predicted cash inflows and outflows are certain to occur at the times specified and perfect capital markets. The assumption of meeting the cost-benefit criterion is not directly related to the Net Present Value model.

When Using the Net Present Value Model,which of the Following