Hi, I am studying for my finance test and the professor provided us with a few practice questions-- and I'm struggling with the following:

1) Why is the reinvestment assumption associated with the NPV calculation more appropriate than the reinvestment assumption associated with the IRR calculation?

2) As a financial analyst of a small manufacturing firm Susan must consider how to adjust your NPV analysis for the investment to expand the firm's production facility in eastern Washington given the news that state regulators are considering new regulation that would make it considerable more costly to operate this facility in eastern Washington. How should Susan inform the CFO in a memo form on how she would adjust your NPV analysis be as specific as possible (she should consider risk adjusted discount rates and the appropriate risk assessment tool).

Anything could help I'm really stressed :(