The internal rate of return assumes that a project's intermediate cash inflows are reinvested at a rate equal to the firm's cost of capital.

Name: The internal rate of return assumes that a project's intermediate cash inflows are reinvested at a rate equal to the firm's cost of capital.
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The internal rate of return assumes that a project's intermediate cash inflows are reinvested at the project's own internal rate of return, not at the firm's cost of capital.

The Internal Rate of Return Assumes That a Project's Intermediate