The irr is equal to the required rate of return

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Reference no: EM131894325

1. When net present value is zero, the IRR is equal to the required rate of return.

1) True

2) False

2. The internal rate of return equation assumes that reinvestment of cash flows occurs at the internal rate of return rate.

1) True

2) False

3. When using net present value you need to be very careful deciding what reinvestment rate you should use.

1) True

2) False

Reference no: EM131894325

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