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Business, 24.04.2020 02:18 zmirandalove100

The Net Present Value method of project evaluation is preferred over the Internal Rate of Return method because the Net Present Value method:

a-Considers the time value money where IRR does not.

b-Considers the risk of the project where the Internal Rate of Return does not.

c-Includes all the cash flows in its decision where IRR does not.

d-Considers the timing of the cash flows where the Internal Rate of Return does not.

e-Assumes a more realistic reinvestment rate assumption than IRR.

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