NPV method's assumption that cash inflows are reinvested at the cost of capital is generally more reasonable than the IRR's assumption that cash flows are reinvested at the IRR This is an important reason why the NPV method is generally preferred over the IRR method.
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Q1: evaluating mutually exclusive projects, the modified IRR
Q3: the regular and the modified IRR (MIRR)
Q5: firm should never accept a project if
Q6: NPV method is based on the assumption
Q8: Conflicts between two mutually exclusive projects occasionally
Q9: Assuming that their NPVs based on the
Q9: IRR method is based on the assumption
Q10: primary reason that the NPV method is
Q14: Conflicts between two mutually exclusive projects occasionally
Q19: Because "present value" refers to the value
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