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The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of

  1. The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. True or False?
  2. The NPV method is based on the assumption that projects' cash flows are reinvested at the project's cost of capital. True or False?

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