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A key to resolving the NPV and IRR confict is through the assumed reinvestment rate. The NPV calculation implicitly assumes that intermediate cash flows are

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A key to resolving the NPV and IRR confict is through the assumed reinvestment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at the and the IRR calculation assumes that the rate at which cash flows can be reinvested is the As a result, when evaluatin is usually the better decision criterion. TOTAL SCORE: 1/4 A key to resolving the NPV and IRR confict is through the assumed reinvestment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at ths , and the IRR calculation assumes that the rate at which cash flows can be reinvested is the As a result, when ev s usually the better decision criterion. TOTAL SCORE: 1/4 (ta cuncleb thes niep arat unauch the nest atep) A key to resolving the NPV and IRR conflict is through the assumed reinvestment rate. The NPV calculation implicitly assumes that intermediate cash flows are reinvested at the , and the IRR calculation assumes that the rate at which cash flows can be reinvested is the As a result, when evaluating mutually exclusive projects, the is usually the better decision criterion. TOtaL scone: 1/4

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