Question: Both the net present value method and the internal rate of return method assume that the earnings produced by a project are reinvested in the

Both the net present value method and the internal rate of return method assume that the earnings produced by a project are reinvested in the company. However, each approach assumes a different rate of return at which earnings are reinvested. Describe the rate of return assumed in each of the two approaches and discuss which of the assumed rates is more realistic.

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