The net present value method assumes that the cash inflows from a project are immediately reinvested at the:

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The net present value (NPV) method assumes that cash inflows from a project will be immediately reinvested at the required rate of return. The required rate of return is the minimum rate of return that an investor expects to earn on an investment, taking into account the investment's risk. By assuming that cash inflows will be reinvested at the required rate of return, the NPV method takes into account the time value of money and provides a more accurate picture of an investment's potential returns.

The Net Present Value Method Assumes That the Cash Inflows