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The internal rate of return (IRR) is such a discount rate that ensures the sum of...

The internal rate of return (IRR) is such a discount rate that ensures the sum of present value of the cash outflows (or costs) with the sum of future value of the cash inflows

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Answer #1

This is a false statement.

In fact, the internal rate of return (IRR) is such a discount rate that ensures the sum of present value of the cash outflows (or costs) equates with the sum of present value of the cash inflows

So correct answer is FALSE

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