The internal rate of return model assumes that all net cash inflows are reinvested at the:

Question

Quizplus · Accepted Answer

The internal rate of return model assumes that all net cash inflows are reinvested at the project's internal rate of return. This is because the internal rate of return is the rate at which the project's net present value equals zero, meaning all cash inflows are equal to the original investment. Therefore, reinvesting at this rate would maintain the same rate of return for the project overall.

The Internal Rate of Return Model Assumes That All Net