For high-IRR investments, it is perfectly acceptable to assume that reinvestment will occur at an equally high, if not higher, rate.
Under the IRR assumption, it may be unrealistic to assume reinvestment at that high resulting rate can occur.

Question

Quizplus · Accepted Answer

The Answer of For high-IRR investments, it is perfectly acceptable to assume that reinvestment will occur at an equally high, if not higher, rate.
Under the IRR assumption, it may be unrealistic to assume reinvestment at that high resulting rate can occur.

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