Question: The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present Value method: Considers the
The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present Value method: Considers the time value money where IRR does not. Considers the risk of the project where the Internal Rate of Return does not Includes all the cash flows in its decision where IRR does not. Considers the timing of the cash flows where the Internal Rate of Return doos not. Assumes a more realistic reinvestment rate assumption than IRR
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