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Vehicle Profile - Speeds

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Can someone let me know how the Speed Restrictions work on Vehicle Profiles?  I can set speeds but there is also a toggle to "Use speed restrictions".
Does this mean that if I set a speed of 50mph but the road can do 60mph, the estimated arrival time works on 50 and not 60?  Also if I switch off this option and set a max of 50mph but the road is only a 30mph, does the estimated time work on 50 and not 30?

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