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The NPV Method's Assumption That Cash Inflows Are Reinvested at the Cost

question 101

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The NPV method's assumption that cash inflows are reinvested at the cost of capital is generally more reasonable than the IRR's assumption that cash flows are reinvested at the IRR.This is an important reason why the NPV method is generally preferred over the IRR method.


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Young male humans, typically defined by their age and developmental characteristics prior to reaching adulthood.

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