The net present value (NPV) method is considered to be superior to the internal rate of return (IRR) method because it

Group of answer choices

focuses on the value created by a project, and assumes that project cash flows can be reinvested at the firm's cost of capital.

None of these is correct.

uses present valuation tools to value the project while IRR ignores the time value of money.

will reject bad projects that would be acceptable using the IRR method.