For high-IRR investments, it is perfectly acceptable to assume that reinvestment will occur at an equally high, if not higher, rate.

Name: For high-IRR investments, it is perfectly acceptable to assume that reinvestment will occur at an equally high, if not higher, rate.
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Quizplus · Accepted Answer

The assumption that reinvestment will occur at an equally high or higher rate is often unrealistic, as it may not reflect actual market conditions or available investment opportunities.

For High-IRR Investments, It Is Perfectly Acceptable to Assume That