The net present value method assumes that all cash inflows are immediately reinvested at a rate of return equal to the internal rate of return.

Name: The net present value method assumes that all cash inflows are immediately reinvested at a rate of return equal to the internal rate of return.
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The net present value (NPV) method assumes that cash inflows are reinvested at the discount rate used in the NPV calculation, not the internal rate of return (IRR).

The Net Present Value Method Assumes That All Cash Inflows