Internal rate of return assumes that all of the cash flows from a capital budgeting can be reinvested at the weighted average cost of capital.

Name: Internal rate of return assumes that all of the cash flows from a capital budgeting can be reinvested at the weighted average cost of capital.
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Internal Rate of Return (IRR) assumes that all cash flows generated by a project can be reinvested at the IRR itself, not at the weighted average cost of capital (WACC).

Internal Rate of Return Assumes That All of the Cash