Comparisons between net present value (NPV) and internal rate of return (IRR) methods
Both the NPV and IRR methods have a reinvestment assumption.
i. State the assumption for each method.
ii. One of the advantages of the NPV method over the IRR method is the ability to adjust for risk considerations. Explain how this can be done.

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The Answer of Comparisons between net present value (NPV) and internal rate of return (IRR) methods
Both the NPV and IRR methods have a reinvestment assumption.
i. State the assumption for each method.
ii. One of the advantages of the NPV method over the IRR method is the ability to adjust for risk considerations. Explain how this can be done.

Comparisons Between Net Present Value (NPV) and Internal Rate of Return