The internal rate of return method assumes that project cash flows can be reinvested at the project's ________.
A) internal rate of return
B) required rate of return
C) growth rate
D) accounting rate of return

Question

Quizplus · Accepted Answer

The internal rate of return method assumes that project cash flows can be reinvested at the project's internal rate of return, which is the rate of return that makes the net present value of the project's cash flows equal zero. Therefore, the best choice is letter A.

The Internal Rate of Return Method Assumes That Project Cash