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    Managerial Accounting Study Set 23
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    Exam 14: Capital Budgeting Decisions
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    The Internal Rate of Return Method Assumes That the Cash
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The Internal Rate of Return Method Assumes That the Cash

Question 8

Question 8

True/False

The internal rate of return method assumes that the cash flows generated by the project are immediately reinvested elsewhere at a rate of return that equals the company's cost of capital.

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