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The Internal Rate of Return Is

Question 328

Multiple Choice

The internal rate of return is:


A) More reliable as a decision making tool than net present value whenever you are considering mutually exclusive projects.
B) Equivalent to the discount rate that makes the net present value equal to one.
C) Difficult to compute without the use of either a financial calculator or a computer.
D) Dependent upon the interest rates offered in the marketplace.
E) A better methodology than net present value when dealing with unconventional cash flows.

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