What is the major assumption in the calculation of IRR?

Name: What is the major assumption in the calculation of IRR?
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

The major assumption in the calculation of the Internal Rate of Return (IRR) is that every dollar of cash flows generated by the project is reinvested at the IRR itself. This assumption is often criticized for being unrealistic, especially for projects with a high IRR, as it assumes that the reinvestment can achieve the same rate of return as the original project.

What Is the Major Assumption in the Calculation of IRR