The internal rate of return (IRR) assumes that funds are reinvested at the: A. cost of capital. B. yield on the investment. C. minimal acceptable rate to the firm. D. yield to maturity.

Using a required rate of return of 12%.

Perpetual Power Machine Co. Purchase of a New High Machining Tool Year Cash Flow Year 1 $500 Year 2 500 Year 3 3,000 Year 4 3,000 Year 5 10,000