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1. What does the internal rate rate of return (IRR) of a project show? A) The annual effective return of a project B) The annual

1. What does the internal rate rate of return (IRR) of a project show?

A) The annual effective return of a project B) The annual required return of a project to equity shareholders C) The annual required return of a project to all shareholders D) The annual effective rate that a project can pay to debt providers

2. What does the IRR of the equity providers show?

A) The annual return the shareholders expect to yield for the total capex of the project B) The annual return the shareholders expect to yield for the debt of the project C) The annual return the shareholders expect to yield for their own money contribution into the project D) The annual return the shareholders expect to yield after fully paying back debt

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