The assumption that the cash flows from an investment project are
reinvested at the company's discount rate applies to:
only the net present value method. Which of the following represents the correct treatment of a loss on the sale of an old asset in a net present value analysis under the total cost approach? Multiply the amount of the loss times the tax rate prior to discounting. The internal rate of return for a project can be determined: by finding the discount rate that yields a zero net present value for the project. In net present value analysis, the release of working capital at the end of a project should be: included as a cash inflow. If a company has computed a project profitability index of -0.015 for an investment project, then: the project's internal rate of return is less than the discount rate.