Both net present value (NPV) and the internal rate of return (IRR) have a reinvestment assumption.
Required:
A. State the assumption for each method.
B. One of the advantages of the NPV method is that users can adjust for risk considerations. Explain how this is done.

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The Answer of Both net present value (NPV) and the internal rate of return (IRR) have a reinvestment assumption.
Required:
A. State the assumption for each method.
B. One of the advantages of the NPV method is that users can adjust for risk considerations. Explain how this is done.

Both Net Present Value (NPV) and the Internal Rate of Return