In capital budgeting analyses, the net present value (NPV) method and the internal rate of return (IRR) method both assume that the reinvestment of the project's cash flows occurs at the same rate.

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Both the NPV and IRR methods assume that cash flows are reinvested at the same rate, which is typically the hurdle rate used in the analysis. This assumption ensures consistency in the analysis and allows for easier comparison of different investment opportunities.

In Capital Budgeting Analyses, the Net Present Value (NPV) Method