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Which of the Following Statements About the Internal Rate of Return

Question 67

Multiple Choice

Which of the following statements about the internal rate of return (IRR) is true?


A) It has the most conservative and realistic reinvestment assumption.
B) It never gives conflicting answers.
C) It fully considers the time value of money.
D) It is greater than the modified internal rate of return if the discount rate is higher than the IRR.

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