这道题什么意思啊

问题如下：

When determining the IRR, the assumption about the reinvestment of interim cash flows is that they earn a return rate that is:

选项：

A.

Higher than the IRR.

B.

Equal to the IRR.

C.

Lower than the IRR.

解释：

B is correct. An important assumption of IRR is that it represents only the (geometric) rate of return on the investment if interim cash flows are reinvested at the IRR.

A is incorrect because if reinvestment rates are higher compared to IRR, the rate of return on the investment will be higher than the IRR.

C is incorrect because if reinvestment rates are lower compared to IRR, the rate of return on the investment will be lower than the IRR​​.