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    Contemporary Financial Management Study Set 1
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    Exam 10: Capital Budgeting: Decision Criteria and Real Option Considerations
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    The Internal Rate of Return Does Not Take into Account
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The Internal Rate of Return Does Not Take into Account

Question 83

Question 83

Multiple Choice

The internal rate of return does not take into account the


A) explicit risk of the net cash flows
B) magnitude of cash flows over the project's life
C) net investment
D) timing of cash flows over the entire life of a project

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