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The Internal Rate of Return

Question 127

Multiple Choice

The internal rate of return:


A) Is the best analytical method to use when comparing mutually exclusive projects.
B) Determines the discount rate which should be used to evaluate a project given current market conditions.
C) Will increase as the initial investment in a project is increased.
D) Is relatively difficult to interpret and explain.
E) Method of analysis can result in multiple rates under certain conditions.

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