Question

Npv method generally is considered to be superior theoretically over ir method because

Answer 1

Answer:

Because the NPV method uses a reinvestment rate close to it.

Answer 2

Answer:

NPV is considered a superior method of evaluating the cash flows from a project because it is able to rank projects of different sizes over varying periods of time to determine the most profitable course of action. It is the discount rate that is used to calculate a zero NPV for a series of cash flows.

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