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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
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.
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