Question: The net present value method assumes that future cash inflows are immediately reinvested at the required rate of return, while the internal rate of return
The net present value method assumes that future cash inflows are immediately reinvested at the required rate of return, while the internal rate of return method assumes that future cash inflows are immediately invested at the internal rate of return rate. Which assumption is better? Explain your answer.
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The assumption that future cash inflows are immediately reinvested at the required rate of return as used in the net present value NPV method is gener... View full answer
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