atate2007

no. its B.
Because i remember in the chapter where this is discussed, i used the calculator to find a time weighted rate of return, and i used the cash flow feature then had it calculate IRR.

Ionutzakis

B is least accurate: The MONEY weighted rate of return is found by calculating the IRR.
The IRR is defined as the discount rate that results in a zero NPV. While it’s true that IRR assumes that all cash flows are reinvested at the IRR, this rate is “internally” determined.
It’s a strange way of thinking about it, but the NPV calculation assumes that all cash flows are reinvested at the discount rate. The IRR is calculated as an NPVderived discount rate. So, the IRR assumes that all cash flows are reinvested as that discount rate (which is, by definition, the IRR).