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    Business
  3. Study Set
    Contemporary Accounting
  4. Exam
    Exam 18: Capital Investment Decisions
  5. Question
    A Problem with Calculating the Internal Rate of Return Is
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A Problem with Calculating the Internal Rate of Return Is

Question 12

Question 12

True/False

A problem with calculating the internal rate of return is that it relies on the estimation of future cash flows, which can be inaccurate, thus making the IRR less reliable.

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