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The Value of R2 Is Only Useful When the Number

question 102

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The value of R2 is only useful when the number of data points is substantially larger than the number of β parameters in the model.

Identify the challenges and key steps involved in the capital budgeting process.
Differentiate between the net present value (NPV) and internal rate of return (IRR) techniques and understand when they may give conflicting results.
Comprehend the concept and application of the modified internal rate of return (MIRR).
Calculate the approximate MIRR of a project and understand its implications.

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Charles Kostelnick

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