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Which of the Following Is True of the Internal Rate

Question 12

Multiple Choice

Which of the following is true of the internal rate of return of a project?


A) The discounted cash flow estimates are only as accurate as the original estimates of the profit.
B) It maximizes the net present value of the investment.
C) It neglects the timing of investment and cash flows.
D) It does not discriminate against projects that are long term or risky.

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