The net present value method assumes that cash flows from a project are immediately reinvested at a rate of return equal to the internal rate of return.

Name: The net present value method assumes that cash flows from a project are immediately reinvested at a rate of return equal to the internal rate of return.
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The net present value method assumes that cash flows from a project are reinvested at the firm's cost of capital, not the internal rate of return.

The Net Present Value Method Assumes That Cash Flows from a Project