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Question 1: Patrick Johnson is a manager for Star Company. He tells you that his...

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Accounting

Question 1: Patrick Johnson is a manager for Star Company. He tells you that his company always maximizes profitability by accepting the investment opportunity with the highest internal rate of return. Explain to Mr. Johnson how his company may improve profitability by sometimes selecting investment opportunities with lower internal rates of return.

Question 2: What typical cash inflow and outflow items are associated with capital investments? Explain.

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