zhyapee, how are you doing friend ? i am just trying to practice . And i come to understand it is helpful to understand....u can also bring the question...that help to everybody and who knows better that will help to others.... now i have few other question here we will compare the answer later: 1. The net present value (NPV) method assumes that cash flows are reinvested at the: a. IRR b. Cost of Capital c. Average rate it pays investors d. Both b & c 2. A larger interest rate will reduce all of the following, except the: a. initial cash flow. b. net present value. c. present value of future cash outlays. d. profitability ind.ex. 3.According to one study done some time ago, more than 80% of small firms use the __________ method to evaluate capital projects. a. NPV b. IRR c. payback d. PI