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Comparing NPR and IRR. Monica and Rachel are having a discussion about the IRR and the NPV as decision models for Monica's new restaurant. Monica
Comparing NPR and IRR. Monica and Rachel are having a discussion about the IRR and the NPV as decision models for Monica's new restaurant. Monica wants to use the IRR because it gives a very simple and intuitive answer. Rachel states that the IRR can cause errors, unlike the NPV. Is Rachel correct? Show one type of error that occurs with the IRR and not with the NPV. One type of error that can be made with the IRR and not the NPV is: (Select the best response.) A. There is an assumption made about the reinvestment rate for IRRs. B. There is a potential for multiple IRRs. C. Rachel is incorrect. There is no error that can be made with the IRR and not with the NPV. D. Both A and B are potential errors of the IRR
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