True. Partitioning the internal rate of return is useful because it can provide an investor with a clear and precise understanding of the performance of their investment.
It can help them to identify which parts of their investment are generating the most return, such as the annual operating cash flow and the projected resale cash flow.
This can help the investor make informed decisions about the future of their investment portfolio, as well as provide a better picture of the overall returns they are obtaining.
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