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1. A conservative approach to reinvesting projected cash flows (the reinvestment assumption) would use the Internal Rate of Return as an interest rate.True or false?

2. The Break-Even Analysis formula shows the number of units needed to be produced to break even on a net income basis.True or false?

3. The Degree of Operating Leverage Formula is only useful beyond the break even point of production.True or false?

4. The Degree of Financial Leverage formula computes leverage on operating income.True or false?

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