Q475
In calculation of internal rate of return, an assumption states that received cash flow from project must
A.
be reinvested
AnswerB.
not be reinvested
C.
be earned
D.
not be earned
Answer: Option A
Solution
Answer: Option A
Solution:
In calculation of internal rate of return, an assumption states that received cash flow from project must be reinvested. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.