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For investment projects, the internal rate of return (IRR): a. is the rate generated solely by the cash flows of the investment. b. rule indicates

For investment projects, the internal rate of return (IRR): a. is the rate generated solely by the cash flows of the investment. b. rule indicates acceptance of an investment when the IRR is less than the discount rate. c. is used primarily to rank projects of varying sizes. d. can effectively be used to compare all types of projects. e. is the rate that causes the net present value of a project to equal the project's initial cost.

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