The internal rate of return method assumes that a project's cash flows are reinvested at the:

A) internal rate of return.
B) simple rate of return.
C) required rate of return.
D) payback rate of return.

Internal Rate Of Return

A financial metric used to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero.

Project's Cash Flows

The inflows and outflows of cash associated with a specific project, considered in its financial analysis.

Reinvested

Pertains to the act of putting earnings or profits back into the business or project instead of paying them out as dividends.