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Question
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.
Answer
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Related questions
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c. a bundling relationship.
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If a firm willingly cannibalizes its existing products with more advanced products, the firm can make it very easy for other firms to achieve a technological lead large enough to prove persuasive to customers.
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