Explore BrainMass

Explore BrainMass

    Net present value method and IRR

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The net present value method is a better method of evaluation than the internal rate of return method because the NPV method A)a ssumes cash flows are reinvested at the internal rate of return, B) is a more liberal method of analysis, C) assumes that cash flows can be reinvested at the firm's more conservative cost of capital, D) none of the above

    © BrainMass Inc. brainmass.com June 3, 2020, 6:37 pm ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/net-present-value-method-and-irr-68243

    Solution Preview

    The net present value method is a better method of evaluation than the internal rate of return method because the NPV method

    D) none of the above

    Reason is:
    Fourth, the IRR is the next ...

    Solution Summary

    This compares the net present value method with the internal rate of return

    $2.19

    ADVERTISEMENT