In capital budgeting analyses, it is possible that NPV and IRR will both involve an assumption of reinvestment of the project's cash flows at the same rate.

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It is common practice in capital budgeting to assume that cash flows generated by a project are reinvested at the same rate as the project's required rate of return, which is used to calculate both the NPV and IRR. This assumption ensures consistency between the two methods and helps to avoid any inconsistencies or contradictions that may arise if different reinvestment rates are used for each method.

In Capital Budgeting Analyses, It Is Possible That NPV and IRR