Explain the different assumptions regarding the investment of cash flows under NPV and IRR. Which assumption is more realistic? Why? Which method is considered the best capital budgeting method? Why? Be able to use several different methods in establishing decision rules for capital budgeting. Contrast and compare the net present value and the internal rate of return models for capital budgeting. Calculate the payback, discounted payback, net present value, internal rate of return, and the modified internal rate of return.