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Cornerstones of Managerial Accounting Study Set 2
Quiz 14: Capital Investment Decisions
A Major Evolutionary Innovation Found in ________ Is the Internal
Question 29
True False
The internal rate of return is the least widely used of the capital investment techniques.
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Q 30
One drawback to the internal rate of return model is that cash inflows must occur evenly over the life of the investment.
Q 31
A postaudit evaluates the overall outcome of the investment and proposes corrective action if needed.
Q 32
In general, it is best if postaudits are done by company management, since they understand the actual operating conditions.
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