What is the reinvestment rate assumption for the NPV method?

project cash flows are reinvested at the internal rate of return.

project cash flows are reinvested at the weighted average cost of capital

project cash flows are not reinvested

Select the correct statement.

The IRR of a project is where the NPV = WACC.

The IRR method does not consider all project cash flows.

The IRR uses an inappropriate discount rate (and reinvestment rate assumption). Projects that differ in risk could have same discount rate; projects equal in risk could have different discount rates

The IRR does not consider the time value of money.