Which of the following capital budgeting assumes that any cash flows generated by a project can be reinvested at its internal rate of return (IRR)?

Question

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The internal rate of return (IRR) method assumes that any cash flows generated by a project can be reinvested at its internal rate of return. This is because IRR is defined as the discount rate at which the NPV of cash flows is equal to zero, implying that all cash flows are being reinvested at the same rate as the project's return.

Which of the Following Capital Budgeting Assumes That Any Cash