A Project Manager Is Using the Internal Rate of Return

question 8

Multiple Choice

A project manager is using the internal rate of return method to make the final decision on which project to undertake. Which of these four projects have the highest internal rate of return?

• A) $25,000 initial outlay with $10,000 cash inflows during the following five years
• B) $12,500 initial outlay with $10,000 cash inflows during the following five years
• C) $25,000 initial outlay with $5,000 cash inflows during the following five years
• D) $12,500 initial outlay with $5,000 cash inflows during the following five years

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Definitions:

Neuron

A specific type of cell that sends nerve signals; known as a neuron.

Neural Communication

The process by which neurons transmit information through electrical and chemical signals across synapses.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response, increasing heart rate, and mobilizing energy in stressful situations.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for reducing bodily arousal and facilitating digestion, often described as the "rest and digest" system.