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In the present work large-scale contracted CI calculations have been performed in order to investigate the bonding situation in Fe(C0)5. Near degeneracy correlation effects are shown to be mainly responsible for the failure of the Hartree-Fock model to correctly reproduce the metal-to-ligand distances (axial and equatorial) and the corresponding force constants. In addition, some aspects concerning the computational treatment of large transition-metal systems are discussed.

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