Which of the following is a major difference between IRR and NPV?
A) NPV assumes that cash flows from projects are invested at the required rate of return while IRR assumes they are reinvested at the rate of return of that particular project.
B) IRR assumes that cash flows from projects are invested at the required rate of return while NPV assumes they are reinvested at the rate of return of that particular project.
C) NPV also gives multiple answers under some circumstances.
D) Both a and b.
E) Both b and c.
Correct Answer:
Verified
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