Partitioning the internal rate of return is useful because it helps the investor to determine how much of the return is from annual operating cash flow and how much is from the projected resale cash flow.

Question

Quizplus · Accepted Answer

Partitioning the internal rate of return helps the investor to separate and identify the different components of the return, such as annual operating cash flow and projected resale cash flow. This can provide valuable insights into the sources of the return and help the investor to make better decisions about the investment.

Partitioning the Internal Rate of Return Is Useful Because It