An implicit assumption of the IRR method is that any cash inflows generated in the earlier years can be reinvested at the rate of the IRR.

Name: An implicit assumption of the IRR method is that any cash inflows generated in the earlier years can be reinvested at the rate of the IRR.
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The IRR method assumes that any cash inflows generated in the earlier years can be reinvested at the same rate as the IRR. This is known as the reinvestment assumption.

An Implicit Assumption of the IRR Method Is That Any