Question: 1. What does NPV represent? 2. What does the IRR represent? 3. What is the reinvestment rate assumption for each of the NPV and IRR

 1. What does NPV represent? 2. What does the IRR represent?

1. What does NPV represent? 2. What does the IRR represent? 3. What is the reinvestment rate assumption for each of the NPV and IRR methods? 4. What does the payback represent? 5. When a firm regularly undertakes projects with positive NPVs, will their stock price rise or fall? Explain

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