The primary reason that the net present value (NPV) is preferred to the internal rate of return (IRR) for capital budgeting decisions is because:

	a.	the net present value (NPV) contains information about a projects "safety margin" which is not inherent in the internal rate of return (IRR).
	b.	the internal rate of return (IRR) does not allow you to determine if the project is acceptable.
	c.	the internal rate of return (IRR) for a project is different for each firm.
	d.	the net present value (NPV) is the only method that allows you to determine which independent project is acceptable.
	e.	the net present value (NPV) allows you to compare mutually exclusive projects.

Industry survey results indicate that the internal rate of return (IRR) is widely used for evaluating capital budgeting projects. Nevertheless, the IRR method is often criticized because it assumes that project cash flows are reinvested at the which of the following rates?

	a.	The project's internal rate of return.
	b.	The market rate of return.
	c.	The firm's expected rate of return.
	d.	risk-free rate of return.
	e.	The firm's opportunity rate return.