An investment project requires a net investment of $150,000. The project is expected to generate annual net cash inflows of $40,000 for the next 5 years. The firm's cost of capital is 9 percent. What assumption do we make when we calculate IRR?

Question 43 options:

	we assume that CFs are reinvested at IRR rate
	it cannot be determined from the information provided
	we assume that CFs are reinvested at cost of capital
	we assume that CFs are reinvested at crossover rate