rnal Rato areVIOuS Internal Rate of Return [L05] It is sometimes stated that "the internal rate of reinvestment rate in the previous step turn approach assumes reinvestment of the intermediate cash flows at the internal rate of return." Is this claim correct? To answer, suppose you calculate the IRR of a ect in the usual way. Next, suppose you do the following: than the initial outlay assuming they are reinvested at the IRR, producing a single future value figure for the project